EarthLink Earnings Preview: Get Ahead of the Analysts

EarthLink (NASDAQ:ELNK) will report earnings before markets open on Thursday, May 2nd. EarthLink, Inc. is an Internet service provider serving individuals and business subscribers. The Company provides Internet access, Web hosting, and electronic commerce solutions internationally from various points of presence.

Here is your Cheat Sheet to Earthlink Earnings:

Earnings Expectations: Analysts expect earnings of $-0.11 per share on revenues of $315.89 million. Currently, the company’s P/E ratio stands at 80.29.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.04 to a loss $0.08. For the current year, the average estimate is a loss of $0.33, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Earthlink has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 955.58 723.73 622.21 1,314 1,349
Diluted EPS ($) 1.61 2.66 0.74 0.32 0.07

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 350.24 344.38 338.18 334.79 331.64
Diluted EPS ($) 0.0387 0.07 -0.01 0.01 -0.0001

Past Performance:
Earthlink has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

“E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our successful CHEAT SHEET investing framework. Don’t waste another minute – click here to discover our CHEAT SHEET stock picks now!

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]