Netflix: No Thanks - We'll Have Level 3 Instead
Focus Equity • 61 Comments
Focus Equity • 61 Comments
Wed, Jul. 27, 11:16 AM
- Level 3 Communications (NYSE:LVLT) has tumbled 6.5% after its Q2 report missed on revenues, though margins continued to grow.
- Overall revenues were flat; core network services revenue rose 0.7% to $1.956B. Excluding 2015 results from a Venezuelan unit that was deconsolidated, CNS revenue rose 2%.
- Of CNS revenue, North America was responsible for $1.61B (up 4%); EMEA $191M (down 7%); Latin America $160M (down 14%, or down 2% excluding Venezuela).
- Wholesale voice services revenue fell 16% to $100M.
- The company took a charge of $40M (about $0.11 in basic EPS) for modification and extinguishment of debt.
- It reaffirmed outlook for the full year of adjusted EBITDA growth of 10%-12% and free cash flow of $1-$1.1B, along with a full-year income tax rate of about 30%.
- Press Release
Wed, Jul. 27, 6:52 AM
Tue, Jul. 26, 5:30 PM
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Tue, Jul. 19, 4:58 PM
- Citi analysts are sticking with a Buy rating on Level 3 Communication (NYSE:LVLT), forecasting good things in next week's earnings.
- Michael Rollins is expecting the company to edge revenue consensus with a Q2 total of $2.09B, with CNS revenue also beating with 2.1% growth to $1.98B.
- He sees EPS at $0.45 vs. consensus expectations for $0.34.
- Investors, though, are likely to focus on “future ambitions for the over-arching strategy and capital allocation given recent press reports and the company’s improving financial flexibility."
- Citi's price target for LVLT is $66, implying 16.8% upside from today's close.
Thu, Apr. 28, 10:23 AM
- Level 3 Communications (NYSE:LVLT) is up 2.6% and edging closer to an all-time high after Q1 results that missed expectations but featured strong 2016 guidance.
- Pointing to strong EBITDA for Q1 ($710M vs. $683M expected), Level 3 boosted its outlook for full-year EBITDA growth to 10-12% from a previous 9-12%; on the low end that would mean $2.9B vs. consensus for $2.85B. It also forecasts lower interest expenses.
- Revenues grew slightly overall in Q1 to $2.05B but fell short of consensus. Core Network Services revenues were $1.947B vs. the prior year's $1.904B; wholesale voice services revenue was $104M, down from a previous $126M.
- By region, Core Network Services was up 4% (constant currency) in North America (to $1.6B), down 5% in EMEA, and up 8% in Latin America.
- EBITDA margins increased as well, to 34.6% from 30.5%.
- Conference call link
- Press Release
Thu, Apr. 28, 6:57 AM
Wed, Apr. 27, 5:30 PM
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Fri, Feb. 5, 1:57 PM
- Level 3 Communications (NYSE:LVLT) is pulling back a bit, down 3.5%, after a strong 6.9% gain yesterday post-earnings.
- Stephens upgraded the firm to Overweight from Equal Weight and raised its price target from $52 to $63, implying 30% upside from its current price of $48.29.
- Valuation is improved after a recent sell-off (Level 3 has declined 10% over the past month), says Stephens' Barry McCarver, who notes revenue growth is picking up after the company achieved its synergy target from integrating TW Telecom.
- “EMEA and Latin America should continue to improve as the company invests in its network and has opportunities for more acquisitions," McCarver notes. "Headwinds from International revenue have neutralized and may become tailwinds this year.”
- The company guided to significantly higher cash flow in the coming year, and some analysts think that could mean not only a possible repurchase program but also acquisitions.
- The company could go after privately held XO Communications, says Cowen's Colby Synesael, or it could be a target itself -- for a buyer like Comcast (NASDAQ:CMCSA).
- Previously: Level 3 up 7% as revenues, profits grow (Feb. 04 2016)
- Previously: Level 3 EPS in-line, misses on revenue (Feb. 04 2016)
Thu, Feb. 4, 12:48 PM
- Level 3 Communications (NYSE:LVLT) is up 7% today after boosting revenues and profits and guiding to significant cash-flow gains for the coming year.
- Revenue breakout: Core network services, $1.94B (up 1.3% on pro forma basis); wholesale voice services and other, $110M (down 17.9%).
- In regional core networks services: North America, $1.57B (up 5%); EMEA, $212M (up 1%); Latin America, $160M (up 8%); all changes in constant currency.
- It's guiding to slower EBITDA growth in 2016 -- 9-12%, vs. 2015's gain of 16% -- but for significantly higher free cash flow of $1B-$1.1B (2015's free cash flow: $658M).
Thu, Feb. 4, 7:03 AM
- Level 3 (NYSE:LVLT): Q4 EPS of $0.53 in-line.
- Revenue of $2.05B (+7.3% Y/Y) misses by $20M.
Wed, Feb. 3, 5:30 PM
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Oct. 28, 2015, 9:28 AM
- Level 3 Communications (NYSE:LVLT) is up 5.3% premarket following Q3 results where profits beat expectations and enterprise revenues rose 8%.
- The company returned to profit after the previous quarter's GAAP loss broke a six-quarter string.
- Revenue breakout: Core network services, $1.95B (up 2.7% on pro forma basis); wholesale voice and other, $116M (down 19.4%).
- Results excluded a nonrecurring $171M charge taken on the company's Venezuelan subsidiary.
- The company guided to higher 2015 EBITDA growth of 15-17%, up from its previous forecast of 14-17% growth. It reiterated expectations for free cash flow of $600M-$650M.
- Conference call to come at 10 a.m. ET.
Oct. 28, 2015, 7:09 AM
- Level 3 (NYSE:LVLT): Q3 EPS of $0.48 beats by $0.03.
- Revenue of $2.06B (+1.0% Y/Y) in-line.
Oct. 27, 2015, 5:30 PM
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Jul. 29, 2015, 9:25 AM
- Level 3 Communications (NYSE:LVLT) is 1.7% lower premarket after Q2 revenues missed expectations slightly despite growing nearly 30% from the prior year, boosted by its Tw telecom acquisition.
- Adjusted net income of $150M led to a basic EPS of $0.42 excluding refinancing losses, which beat consensus. The debt-extinguishment charges led the company to a GAAP loss, ending six straight quarters of profit.
- In constant currency, core network services revenue grew 5%, paced by 7% growth in North America, and 6% growth in Latin America helped mitigate a 3% decline in EMEA.
- Revenue breakout: Core network services, $1.94B (up 2.9% on pro forma basis); wholesale voice and other, $120M (down 16.7%).
- Capex was $317M; free cash flow was $102M, up from the prior year's $62M (pro forma).
- The company reiterated its full-year outlook for Adjusted EBITDA growth of 14-17% and free cash flow of $600M-$650M. It's lowering its expected interest expense, to $650M on a GAAP basis for the year (down from $660M) and net cash interest expense of $640M (down from $645M).
- Conference call to come at 10 a.m. ET.
Level 3 Communications, Inc. provides a range of integrated communications services, non-switched and local-access telecommunications services. It provides IP-based communications services to enterprise, content, government and wholesale customers. The company products include Content... More
Industry: Diversified Communication Services
Country: United States
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