Level 3 Communications Earnings: Here’s Why Shares are Up Now

Level 3 Communications Inc. (NASDAQ:LVLT) 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 up 0.78%.

Level 3 Communications Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.11 in the quarter versus EPS of $-0.29 in the year-earlier quarter.

Revenue: Decreased 1.32% to $1.57 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Level 3 Communications Inc. reported adjusted EPS loss of $0.11 per share. By that measure, the company missed the mean analyst estimate of $-0.08. It missed the average revenue estimate of $1.59 billion.

Quoting Management: “Level 3 saw good growth in enterprise Core Network Services revenue this quarter across all three of our regions, and it continues to be the key driver for our business,” said Jeff Storey, president and CEO of Level 3. “Demand remains healthy, and we had solid growth in Core Network Services sales this quarter.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased to $-0.11 in the quarter versus EPS of $-0.36 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 $0.03 to a profit $0.02. For the current year, the average estimate is a loss of $0.32, which is the same with that ninety days ago.

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

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