Level 3 Communications
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Level 3 Communications met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP loss per share dropped.
Margins increased across the board.
Level 3 Communications recorded revenue of $1.61 billion. The 14 analysts polled by S&P Capital IQ anticipated sales of $1.60 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.16. The six earnings estimates compiled by S&P Capital IQ anticipated -$0.07 per share. GAAP EPS were -$0.26 for Q4 compared to -$0.80 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 59.4%, 120 basis points better than the prior-year quarter. Operating margin was 11.6%, 480 basis points better than the prior-year quarter. Net margin was -3.5%, 680 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $6.57 billion. The average EPS estimate is $0.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,828 members out of 1,961 rating the stock outperform, and 133 members rating it underperform. Among 247 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 218 give Level 3 Communications a green thumbs-up, and 29 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Level 3 Communications is outperform, with an average price target of $27.23.
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