Level three Communications, Inc. Earnings: Loss Narrows but Still Short of Estimates

Level three Communications, Inc.’s (NASDAQ:LVLT) first quarter loss narrowed due mainly to positive revenue growth. Level three Communications, through its operating subsidiaries, is a facilities-based provider of a range of integrated communications services.

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Level three Communications Earnings Cheat Sheet for the First Quarter

Results: Loss narrowed to $138 million (loss of $1.83 per diluted share) from $205 million (loss of $1.16 per share) in the same quarter a year earlier.

Revenue: Rose 70.7% to $1.59 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Level three Communications, Inc. fell short of the mean analyst estimate of a loss of 56 cents per share. Analysts were expecting revenue of $1.59 billion.

Quoting Management: “We made good progress on integration this quarter, while delivering growth in revenue and Adjusted EBITDA,” said James Q. Crowe, CEO of Level three. “With our continued focus on customer experience and the strong demand we see in the market, we believe we are well-positioned for continued growth.”

Key Stats:

Revenue has risen for the last four quarters. Revenue increased 65.6% to $1.52 billion in the fourth quarter of the last fiscal year. The figure rose 3.8% in the third quarter of the last fiscal year from the year earlier and climbed 2.6% in the second quarter of the last fiscal year from the year-ago quarter.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the fourth quarter of the last fiscal year, it topped the mark by 4 cents, and in the third quarter of the last fiscal year, it was ahead by 32 cents.

Looking Forward: The outlook for the company’s performance in the upcoming quarter is increasingly favorable. Over the past ninety days, the average estimate for the second quarter has risen from a loss 82 cents per share to a profit of 38 cents. The average estimate for the fiscal year is now $1.10 per share, a rise from the $3.45 predicted ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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