Level 3 Communications (NYSE: LVLT ) reported earnings on May 3. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Level 3 Communications met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share dropped.
Gross margins dropped, operating margins improved, and net margins expanded.
Level 3 Communications chalked up revenue of $1.59 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $1.59 billion on the same basis. GAAP reported sales were 71% higher than the prior-year quarter's $929.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.30. The 11 earnings estimates compiled by S&P Capital IQ predicted -$0.42 per share. GAAP EPS were -$0.66 for Q1 against -$1.83 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.6%, 140 basis points worse than the prior-year quarter. Operating margin was 7.3%, 770 basis points better than the prior-year quarter. Net margin was -8.7%, 1,340 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is -$0.24.
Next year's average estimate for revenue is $6.51 billion.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,854 members out of 1,986 rating the stock outperform, and 132 members rating it underperform. Among 253 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 226 give Level 3 Communications a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Level 3 Communications is outperform, with an average price target of $30.50.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Level 3 Communications fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.