EarthLink Earnings: Here’s Why Investors Don’t Like These Results
EarthLink Inc. (NASDAQ:ELNK) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 6.22%.
EarthLink Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $-0.11 in the quarter versus EPS of $-0.01 in the year-earlier quarter.
Revenue: Decreased 7.33% to $313.4 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: EarthLink Inc. reported adjusted EPS loss of $0.11 per share. By that measure, the company missed the mean analyst estimate of $-0.06. It missed the average revenue estimate of $314.76 million.
Quoting Management: “In the second quarter of 2013, we continued to see increased demand in the marketplace for our growth products. Our sales force delivered significantly higher productivity, higher sales in aggregate, a richer mix of growth products and materially higher average revenue per sale,” said EarthLink Chairman and Chief Executive Officer Rolla P. Huff.
Key Stats (on next page)…
Revenue decreased 2.07% from $320.02 million in the previous quarter. EPS decreased to $-0.11 in the quarter versus EPS of $-2.30 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.1 to a loss $0.08. For the current year, the average estimate has moved down from a loss of $0.65 to a loss of $2.56 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)