Please ensure Javascript is enabled for purposes of website accessibility

Will These Numbers from Level 3 Communications Be Good Enough for You?

By Seth Jayson - Updated Apr 10, 2017 at 1:46PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

Level 3 Communications (NYSE: LVLT) is expected to report Q1 earnings on April 25. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Level 3 Communications's revenues will grow 1.2% and EPS will remain in the red.

The average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is -$0.11.

Revenue details
Last quarter, Level 3 Communications tallied revenue of $1.61 billion. GAAP reported sales were 2.2% higher than the prior-year quarter's $1.58 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.16. GAAP EPS were -$0.26 for Q4 versus -$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.

Recent performance
For the preceding quarter, gross margin was 59.4%, much worse than the prior-year quarter. Operating margin was 12.8%, much worse than the prior-year quarter. Net margin was -3.5%, 680 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.52 billion. The average EPS estimate is $0.05.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,821 members out of 1,953 rating the stock outperform, and 132 members rating it underperform. Among 224 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 198 give Level 3 Communications a green thumbs-up, and 26 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.

Looking for alternatives to Level 3 Communications? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Level 3 Communications, Inc. Stock Quote
Level 3 Communications, Inc.
LVLT

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.