Level 3 Communications, Inc. Jumps on Strong Fourth-Quarter Earnings
Level 3 Communications reported fourth-quarter results this morning, beating earnings estimates on in-line revenues. In pre-market trading, Level 3 shares jumped 3% higher on the news.
The international communications network saw earnings swing to $0.06 per share, compared to a net loss of $0.26 per share a year ago. Analysts were looking for $0.02 of positive earnings per share. Total sales fell 0.8% year over year to $1.6 billion, in line with Wall Street estimates.
Adjusted EBITDA profits rose 14.5% to $466 million. Free cash flows landed at $197 million, a 2.5% decline.
Core network services delivered 4% higher sales year over year, driven by a strong showing in the Americas but held back by soft European results -- particularly a 31% decrease in U.K. government orders. Going forward, Level 3 will no longer report separate numbers for this sub-market, folding U.K. government figures into the EMEA enterprise segment instead.
Looking ahead, Level 3 expects core network sales to increase more than 2.9%, in fiscal 2014, adjusting for currency exchange effects. EBITDA income should grow between 11% and 14%.
"Level 3's global network and differentiated customer experience continue to resonate with enterprises, leading to solid CNS [core networks services] enterprise growth of 6.8 percent for the full year 2013," Level 3 CEO Jeff Storey said in a prepared statement. "We are well-positioned for improved growth in 2014."
The article Level 3 Communications, Inc. Jumps on Strong Fourth-Quarter Earnings originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned, and neither does The Motley Fool. 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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