Cogent Communications Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cogent Communications Group met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue grew significantly, and GAAP earnings per share increased significantly.
Margins expanded across the board.
Cogent Communications Group tallied revenue of $77.4 million. The 11 analysts polled by S&P Capital IQ expected revenue of $78.1 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $69.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.01. The 12 earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share on the same basis. GAAP EPS of $0.12 for Q3 were 140% higher than the prior-year quarter's $0.05 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.6%, 230 basis points better than the prior-year quarter. Operating margin was 13.8%, 550 basis points better than the prior-year quarter. Net margin was 6.9%, 320 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $79.8 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $306.2 million. The average EPS estimate is $0.05.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 78 members rating the stock outperform and 33 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 25 give Cogent Communications Group a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cogent Communications Group is outperform, with an average price target of $18.92.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.