Cogent Communications Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Cogent Communications Group met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share improved.
Margins dropped across the board.
Cogent Communications Group reported revenue of $76.9 million. The 11 analysts polled by S&P Capital IQ hoped for a top line of $77.3 million on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $73.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.05. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. GAAP EPS were -$0.05 for Q1 compared to -$0.01 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 quarter, gross margin was 55.3%, 140 basis points worse than the prior-year quarter. Operating margin was 7.8%, 220 basis points worse than the prior-year quarter. Net margin was -2.7%, 230 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $80.3 million. On the bottom line, the average EPS estimate is $0.02.
Next year's average estimate for revenue is $326.4 million. The average EPS estimate is $0.10.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 76 members out of 109 rating the stock outperform, and 33 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Cogent Communications Group a green thumbs-up, and seven 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 $19.49.
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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.