Level 3 Communications (NYSE: LVLT ) is expected to report Q4 earnings on Feb. 12. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Level 3 Communications's revenues will grow 1.6% and EPS will remain in the red.
The average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is -$0.07.
Last quarter, Level 3 Communications tallied revenue of $1.59 billion. GAAP reported sales were 72% higher than the prior-year quarter's $927.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at -$0.26. GAAP EPS were -$0.76 for Q3 versus -$1.75 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 preceding quarter, gross margin was 59.6%, 350 basis points worse than the prior-year quarter. Operating margin was 10.2%, 940 basis points better than the prior-year quarter. Net margin was -10.4%, 1,190 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $6.37 billion. The average EPS estimate is -$1.09.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,828 members out of 1,961 rating the stock outperform, and 133 members rating it underperform. Among 243 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 give Level 3 Communications a green thumbs-up, and 29 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 $28.13.
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