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What: Shares of Knology
So what: In the third quarter revenue grew 15% to $130 million falling $2.1 million short of estimates. Net income jumped 74% to $10.3 million, or $0.27 per share, but the experts were expecting earnings of $0.33 per share.
Now what: Connections grew by 12,000 in the third quarter showing that Knology is adding to the customer base quickly. Considering the solid growth rate, I think expectations just got ahead of reality for investors causing the pullback in early trading. But cooler heads prevailed and shares are now about flat on the day, a much better reaction for a quarter that showed a lot of positive signs.
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Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.
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