LVLT Third Quarter Earnings Sneak Peek

Level three Communications, Inc. (NYSE:LVLT) will unveil its latest earnings on Wednesday, October 24, 2012. Level three Communications, through its operating subsidiaries, is a facilities-based provider of a range of integrated communications services.

Level three Communications, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 21 cents per share, a narrower loss from the year-earlier quarter net loss of $1.16. During the past three months, the average estimate has moved down from a loss of 18 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 19 cents during the last month.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported a loss of 29 cents per share versus a mean estimate of net loss of 27 cents per share. In the first quarter, the company beat estimates by 22 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.6 billion in revenue this quarter, a rise of 69% from the year-ago quarter. Analysts are forecasting total revenue of $6.38 billion for the year, a rise of 47.3% from last year’s revenue of $4.33 billion.

A Look Back: In the second quarter, the company’s loss narrowed to a loss of $62 million (29 cents a share) from a loss of $181 million ($1.65) a year earlier, but missed analyst expectations. Revenue rose 70.2% to $1.59 billion from $932 million.

Analyst Ratings: With six analysts rating the stock as a buy, one rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.8% in the third quarter of the last fiscal year, 65.6% in the fourth quarter of the last fiscal year and 70.7% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.97 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.98 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 1.2% to $1.65 billion while assets decreased 0.4% to $1.6 billion.

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

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