Level 3 Communications (NYS: LVLT) reported earnings on Oct. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Level 3 Communications met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.
Gross margins dropped, operating margins expanded, net margins grew.
Level 3 Communications recorded revenue of $1.59 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.60 billion on the same basis. GAAP reported sales were 68% higher than the prior-year quarter's $947.0 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 -$0.26. The eight earnings estimates compiled by S&P Capital IQ predicted -$0.20 per share. GAAP EPS were -$0.76 for Q3 against -$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 quarter, gross margin was 59.6%, 240 basis points worse than the prior-year quarter. Operating margin was 8.7%, 670 basis points better than the prior-year quarter. Net margin was -10.4%, 1,150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.61 billion. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $6.38 billion. The average EPS estimate is -$0.89.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,836 members out of 1,973 rating the stock outperform, and 137 members rating it underperform. Among 254 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 223 give Level 3 Communications a green thumbs-up, and 31 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 Level 3 Communications Misses Where it Counts originally appeared on Fool.com.
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