Can Level 3 Communications Meet These Numbers?
Level 3 Communications (NYS: LVLT) is expected to report Q4 earnings on Feb. 12. 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 1.6% and EPS will remain in the red.
The average estimate for revenue is $1.60 billion. On the bottom line, the average EPS estimate is -$0.07.
Last quarter, Level 3 Communications tallied revenue of $1.59 billion. GAAP reported sales were 72% higher than the prior-year quarter's $927.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at -$0.26. GAAP EPS were -$0.76 for Q3 versus -$1.75 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 preceding quarter, gross margin was 59.6%, 350 basis points worse than the prior-year quarter. Operating margin was 10.2%, 940 basis points better than the prior-year quarter. Net margin was -10.4%, 1,190 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $6.37 billion. The average EPS estimate is -$1.09.
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 243 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 214 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 $28.13.
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The article Can Level 3 Communications Meet These Numbers? originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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