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What: Shares of Level 3 Communications (NYSE: LVLT ) plunged today by as much as 10% after the company reported third-quarter earnings.
So what: Revenue came in at $1.6 billion, which was right on target. Unfortunately, Level 3 posted a worse-than-expected loss of $0.26 per share, while analysts were looking for just $0.20 per share in red ink. On the bright side, adjusted EBITDA increased 12% to $372 million.
Now what: While the net loss was worse than expected, it was still a sequential improvement from the second quarter, when the company lost $0.29 per share. CEO James Crowe said enterprise demand remains strong and Latin America contributed to healthy growth in its core network services business. Level 3 is reiterating its guidance, expecting core network services sales to grow in the fourth quarter.
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