Level 3 Communications Earnings: Here’s Why Investors are Happy Now

Level 3 Communications Inc. (NASDAQ:LVLT) had a loss and beat Wall Street’s expectations, BUT 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 up 0.79%.

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Level 3 Communications Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.13 in the quarter versus EPS of $-0.66 in the year-earlier quarter.

Revenue: Decreased 0.57% to $1.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Level 3 Communications Inc. reported adjusted EPS loss of $0.13 per share. By that measure, the company beat the mean analyst estimate of $-0.16. It missed the average revenue estimate of $1.61 billion.

Quoting Management: “I am excited to be leading Level 3 at a time when we have a great opportunity to expand our market position in the enterprise business,” said Jeff Storey, president and CEO of Level 3. “We intend to continue our focus on providing outstanding service to our customers, and believe that will help us deliver profitable revenue growth, margin expansion and free cash flow generation.”

Key Stats (on next page)…

Revenue decreased 2.29% from $1.61 billion in the previous quarter. EPS increased to $-0.13 in the quarter versus EPS of $-0.26 in the previous quarter.

Looking Forward: 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 profit of $0.05 to a loss $0.03. For the current year, the average estimate has moved down from a profit of $0.38 to a loss of $0.09 over the last ninety days.

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