Level 3 Communications (NYSE:
) is taking a pounding on Tuesday on word of a paltry fourth
The Broomfield, Colorado firm's revenue was on par with Wall
Street expectations. Analysts were looking for $1.61 billion and
that's just what they got. The firm finished at this figure,
topping Q4 2011 by two percent.
Revenue was up slightly for the year, as well. After finishing
2011 with $6.32 billion, the communications firm closed 2012 at
$6.38 billion - a one percent increase.
However, EPS was way off base for the quarter. Analysts
expected a loss of $0.18 per share. Level 3 finished with an
adjusted loss of $0.16.
Yet, the fourth quarter finished better than the same period
in 2011, when the firm finished with a loss of $1.15 per share.
Similarly, yearly EPS (or lack thereof) was better, finishing at
a loss of $1.96 versus a loss of $4.28 in 2011.
Conquering the Americas
Level 3 saw revenue increases in both the fourth quarter and
full year in the Americas.
Fourth quarter revenue in North America finished at $1.02
billion - a five percent gain year-over-year. For the year, it
finished up five percent at $4.03 billion, representing 63
percent of the company's total revenue.
Meanwhile, in Latin America, fourth quarter revenue rose nine
percent year-over-year. Overall, revenue rose five percent in
2012 in this part of the world.
Uphill Battle in Europe, Middle East and Africa (EMEA)
On the EMEA front, fourth quarter revenue was down three
percent year-over-year. For the entire year, it was down seven
Level 3 has been the punching bag of choice on Wall Street on
Since mid-December, the stock has hovered in the $22.50 to
$24.00+ range. However, it is around $21.50 as of this writing
and rests at its lowest point since December 17, 2012.
Yet, while past performance doesn't guarantee anything,
investors who hold this stock may not want to cut and run just
yet. The stock has had a remarkable string of consistency over
the past two years.
From February through mid-October of 2011, the stock stayed in
the $1.30 to $2.00+ range on just about every day. Then, there
was a 1:15 stock split, and the price climbed accordingly to just
over $23. Since that time, it has hovered in the high teens to
mid $20s without any major upswings or downswings.
Level 3 is down over 13 percent on Tuesday, but remains well
within its normal range over the past two years.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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