Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Cincinnati Bell's Shares Jumped

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Ohio telecom Cincinnati Bell (NYSE: CBB  ) were ringing up big gains today, dialing up as much as 14% in intraday trading after a pair of big announcements.

So what: Though it's still earnings season, Cincinnati Bell's earnings weren't the big news today. In fact, its earnings report didn't look all that great. Revenue for the quarter was a bit lighter than expected, as the $368 million that the telecom provider reported fell short of the $370 million that analysts were looking for. On the bottom line, as-reported earnings per share came in at just $0.01, but that low tally was driven by a $13 million asset-impairment charge during the quarter. Backing out that non-cash charge, the company earned $0.05 per share, but that still fell short of the consensus estimate of $0.06.

Now what: So why are investors so charged up today? Cincinnati Bell also announced that it's going to conduct an initial public offering for its data-center subsidiary CyrusOne. The spinoff will also see CyrusOne organized as a real estate investment trust, a structure that many investors like because it provides tax advantages for the company and requires that it pay out 90% of profits to investors. For Cincinnati Bell, the move will help it pay down debt as it sells new shares of CyrusOne in the market, and it will also help it realize the value of a valuable subsidiary that the market may have overlooked.

Want to keep up to date on Cincinnati Bell? Add it to your Watchlist.

Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1978024, ~/Articles/ArticleHandler.aspx, 10/27/2016 8:57:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:00 PM
CBB $20.10 Up +0.50 +2.55%
Cincinnati Bell CAPS Rating: ***