Cogent Communications Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cogent Communications Group met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share shrank to a loss. GAAP earnings per share dropped to a loss.
Margins dropped across the board.
Cogent Communications Group logged revenue of $82.6 million. The 13 analysts polled by S&P Capital IQ foresaw sales of $82.2 million 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 -$0.02. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. Non-GAAP EPS were -$0.02 for Q4 versus $0.12 per share for the prior-year quarter. GAAP EPS were -$0.01 for Q4 versus $0.12 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 54.4%, 320 basis points worse than the prior-year quarter. Operating margin was 11.1%, 270 basis points worse than the prior-year quarter. Net margin was -0.3%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $84.9 million. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $354.9 million. The average EPS estimate is $0.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 79 members out of 115 rating the stock outperform, and 36 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 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 $23.82.
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