Level 3 Communications Earnings Preview: Can This Streak Finally End?

Level 3 Communications (NASDAQ:LVLT) will report earnings before markets open on Thursday, April 25th. Level 3 Communications, Inc. provides telecommunications and information services, including local, long distance, and data transmission. The Company also provides other enhanced communications and Internet services, and is involved in coal mining businesses.

Here is your Cheat Sheet to Level 3 Communications Earnings:

Earnings Expectations: Analysts expect earnings of $-0.14 per share on revenues of $1.61 billion.

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 profit of $0.05 to a loss $0.03. For the current year, the average estimate is a loss of $0.1, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Level 3 Communications has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 4,301 3,695 3,591 4,333 6,376
Diluted EPS ($) -2.985 -5.68 -5.62 -5.51 -1.96

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 ($) in millions 1,579 1,586 1,586 1,590 1,614
Diluted EPS ($) -0.34 -0.66 -0.29 -0.76 -0.25

Past Performance:
Level 3 Communications has missed analyst estimates 4 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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