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 Inc. Shares Bounced Higher Today

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 Cincinnati Bell (NYSE: CBB  ) rose more than 15% Thursday after the communications company released better-than-expected first-quarter results. 

So what: Quarterly revenue rose 3.9% year over year, to $323 million, which translated to adjusted earnings of $0.04 per diluted share. Analysts, on average, were looking for earnings of $0.02 per share on sales of $303.86 million.

Meanwhile, first-quarter adjusted earnings before interest, taxes, depreciation and amortization rose slightly to $106 million. And don't forget CinBell's $927 million stake in data-center REIT CyrusOne, which last quarter saw revenue climb 29% from the same year-ago period to $78 million, while adjusted EBITDA increased 32% to $42 million.

Finally, Cincinnati Bell expects 2014 revenue of $1.2 billion, which is roughly inline with analysts' expectations. The company also expects 2014 adjusted EBITDA of $383 million, plus or minus 2%.

Now what: CinBell CEO Ted Torbeck added: "We are excited about our first quarter results. The momentum created from our strategic investments is accelerating and for the first time in more than a decade we generated year-over-year growth in both Wireline revenue and Adjusted EBITDA." Torbeck went on to describe last month's decision to sell their Wireless spectrum as "a significant milestone in our efforts to transform Cincinnati Bell into a healthy fiber based entertainment, communications and IT Solutions company with growing revenue, growing profits and significant cash flows."

As it stands, I like where Cincinnati Bell is headed, and think its shares should still prove a bargain for long-term investors.

Read/Post Comments (0) | Recommend This Article (2)

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.

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: 2950341, ~/Articles/ArticleHandler.aspx, 8/28/2015 2:17:02 AM

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...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,654.77 369.26 2.27%
S&P 500 1,987.66 47.15 2.43%
NASD 4,812.71 115.17 2.45%

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

8/27/2015 4:05 PM
CBB $3.47 Up +0.03 +0.87%
Cincinnati Bell CAPS Rating: ***