LVLT Earnings Cheat Sheet: Loss Widens

Level three Communications, Inc. (NASDAQ:LVLT) reported its results for the second quarter. Level three Communications Inc. through its operating subsidiaries is facilities based provider of a range of integrated communications services.

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Level three Communications Earnings Cheat Sheet for the Second Quarter

Results: Loss widened to $181 million (11 cents per diluted share) from $169 million (loss of 10 cents per share) in the same quarter a year earlier.

Revenue: Rose 2.6% to $932 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LVLT reported adjust net loss of 9 cents per share. By this measure, it met the mean analyst estimate of a loss of 9 cents per share. Analysts were expecting revenue of $937.4 million.

Quoting Management: “Our track record around execution in the business, combined with our continued focus on the customer experience, has proven to be successful in winning new business, contributing to positive revenue growth,” said James Q. Crowe, CEO of Level three. “We are pleased with the progress we have made in growing Core Network Service revenue over the last year.”

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.9 percentage points to 60.7% from the year earlier quarter. Over that span, margins have grown on average 1.5 percentage points per quarter on a year-over-year basis.

From the first quarter, the company’s current liabilities rose to $1.67 billion from $1.18 billion.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 2.1% to $929 million from the year earlier quarter.

Competitors to Watch: Global Crossing Ltd. (NASDAQ:GLBC), AT&T Inc. (NYSE:T), Verizon Communications Inc. (NYSE:VZ), tw telecom inc. (NASDAQ:TWTC),  AboveNet, Inc. (NYSE:ABVT), PAETEC Holding Corp. (NASDAQ:PAET), Xfone, Inc. (AMEX:XFN), Tata Communications Ltd. (NYSE:TCL), Sprint (NYSE:S) and Cincinnati Bell Inc. (NYSE:CBB).

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(Source: Xignite Financials)

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