Lumos Networks Earnings: Here’s Why the Stock is Falling Now

Lumos Networks Corp (NASDAQ:LMOS) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.97%.

Lumos Networks Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 69.23% to $0.22 in the quarter versus EPS of $0.13 in the year-earlier quarter.

Revenue: Rose 2.95% to $52.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lumos Networks Corp reported adjusted EPS income of $0.22 per share. By that measure, the company missed the mean analyst estimate of $0.23. It beat the average revenue estimate of $51.89 million.

Quoting Management: “In the second quarter of 2013, Lumos Networks delivered overall year-over-year revenue growth of 3% and adjusted EBITDA growth of 16%,” commented CEO Tim Biltz. “Our Strategic Data revenue grew 13% year-over-year to nearly $30 million and represented 57% of total revenue. EBITDA generated from Strategic Data revenue for the second quarter equated to 45% of revenue.”
“I continue to expect that Lumos Networks will deliver solid results in 2013 including year-over-year revenue growth and near double-digit EBITDA growth,” Mr. Biltz continued.

Key Stats (on next page)…

Revenue decreased 0.44% from $52.53 million in the previous quarter. EPS decreased 26.67% from $0.30 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.2 to a profit $0.22. For the current year, the average estimate has moved up from a profit of $0.82 to a profit of $0.99 over the last ninety days.

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

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