What happened
Shares of GTT Communications (GTT) are down 17.2% as of 3:30 p.m. EST Tuesday after the telecommunications company announced weaker-than-expected third-quarter 2019 results.
So what
More specifically, GTT's quarterly revenue fell 6.4% year over year to $420 million, translating to an adjusted (non-GAAP) net loss of $0.31 per share. Analysts, on average, were looking for a narrower net loss of $0.21 per share on revenue closer to $425.7 million.
IMAGE SOURCE: GETTY IMAGES.
Now what
GTT did not provide specific forward revenue or earnings guidance. But the company did say it has expanded plans to divest nonstrategic and noncore assets to include its pan-European fiber assets, subsea transatlantic fiber, and data infrastructure -- all assets initially acquire through its previous purchases of Interoute last year and Hibernia in 2017.
Those divestitures might well be the right move to streamline GTT's operations as it works back toward sustained, profitable growth. But given GTT's relative underperformance in the meantime, it's no surprise to see shares falling hard today.
