Cogent Communications Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Cogent Communications Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share expanded.
Margins grew across the board.
Cogent Communications Group logged revenue of $84.6 million. The eight analysts polled by S&P Capital IQ expected to see net sales of $85.3 million on the same basis. GAAP reported sales were 10.0% higher than the prior-year quarter's $76.9 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 $0.01. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.02 per share. GAAP EPS were $0.01 for Q1 compared to -$0.05 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 55.9%, 60 basis points better than the prior-year quarter. Operating margin was 11.7%, 390 basis points better than the prior-year quarter. Net margin was 0.4%, 310 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $87.0 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $354.4 million. The average EPS estimate is $0.27.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 79 members out of 118 rating the stock outperform, and 39 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 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 $25.32.
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