Cogent Communications Group's Upcoming Earnings: What You Need To Know

Seth Jayson, The Motley Fool
Updated

Cogent Communications Group (NAS: CCOI) is expected to report Q1 earnings on May 7. 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 Cogent Communications Group's revenues will increase 10.9% and EPS will turn positive

The average estimate for revenue is $85.3 million. On the bottom line, the average EPS estimate is $0.02.


Revenue details
 Last quarter, Cogent Communications Group logged revenue of $82.6 million. GAAP reported sales were 4.4% higher than the prior-year quarter's $79.1 million.

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, EPS came in at -$0.01. GAAP EPS were -$0.01 for Q4 against $0.12 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 54.4%, 320 basis points worse than the prior-year quarter. Operating margin was 11.1%, 270 basis points worse than the prior-year quarter. Net margin was -0.3%, 720 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $354.4 million. The average EPS estimate is $0.27.

Investor sentiment
 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 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Cogent Communications Group a green thumbs-up, and six 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 $23.82.

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The article Cogent Communications Group's Upcoming Earnings: What You Need To Know 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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