U.S. internet service provider's Q2 adjusted EBITDA missed analyst expectations
Company repurchased $20.4 mln of 2032 secured notes at a discount during Q2
Company did not provide specific financial guidance for future periods in the press release
Key details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EBITDA
Miss
$71.10 mln
$75.30 mln (10 Analysts)
Q2 Gross Margin
24.50%
Q2 Basic EPS
Beat
$1.39
-$0.97 (11 Analysts)
Q2 Adjusted Gross Margin
47.00%
Q2 Adjusted Gross Profit
$110.65 mln
Result Drivers
Service revenue decline - Company said Q2 service revenue fell 1.5% sequentially and 4.3% year-over-year, partly due to negative foreign exchange impacts.
Off-net weakness - Off-net revenue dropped 5.1% sequentially and 17.3% year-over-year, reflecting continued declines in off-net customer connections.
Analyst coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell".
CCOI•
