Level 3 Communications (LVLT) Tops Q1 Earnings, Lags Revenues - Tale of the Tape
Level 3 Communications Inc. (LVLT), based in Broomfield, Colo., is a leading provider of local, national and global communications services to enterprise, government and carrier customers across the globe.
Level 3 Communications is expected to report strong revenues in the first-quarter 2015 driven by impressive Core Network Services (CNS) sales in North America. Further, the company expects to perform well in 2015 buoyed by the acquisition of tw telecom. Also, the addition of collaboration services to its Cloud Connect offering should boost the top line.
On the other hand, the company faces the risk of adverse foreign currency movements that may impact its top line. Moreover, integration costs related to the tw telecom acquisition might hurt the bottom line in the coming quarters.
Currently, Level 3 Communications has a Zacks Rank #3 (Hold). The company has an impressive track record having delivered positive earnings surprises in each of the last four quarters, with an average beat of 26.35%. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Level 3 Communications reported better than expected Q1 earnings estimate. Our consensus earnings estimate called 33 cents per share and the company posted earnings of 35 cents per share. Investors should note that these figures take out stock option expenses.
Revenue: Level 3 Communications reported total revenue of $2,053 million which lagged our estimate by $12 million.
Key States to Note: Level 3 Communications expects to perform well in 2015. The company expects to generate free cash flow in the range of $600 million to $650 million for 2015. The company also expects adjusted EBITDA growth of 14% to 17% in 2015.
Check back for our full write up on this Level 3 Communications earnings report later!
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