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Cincinnati Bell (CBB) Posts Break-even in Q1, Revenues Beat - Tale of the Tape

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Cincinnati Bell Inc. ( CBB ) is a leading regional diversified telecommunications and technology service provider to both residential and business customers. The company operates through three segments: Wireline, IT Services & Hardware and Wireless.

We believe Cincinnati Bell is poised to deliver a stable financial performance in the to-be-reported quarter, owing to its investment in strategic products, high speed Internet and strong managed service demand.

Notably, the company's Wireline segment stands as the prime growth driver with strength in the Fioptics business from continuous fiber deployment. Further, the acquisition of CyrusOne should support high demand for data center colocation service. For 2015, CyrusOne expects revenue and EBITDA growth of 14% and 12%, respectively. However, we are wary as the company continues to experience erosion in local access lines owing to fierce competition, which might weigh on the quarter's performance.

Cincinnati Bell currently carries a Zacks Rank #3 (Hold). The company has generated a negative average earnings surprise of 10.42% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Cincinnati Bell surpassed Q1 earnings. Our consensus estimate called for an adjusted loss of 6 cents and the company reported a break-even ($0.00 per share). Investors should note that these figures take out stock option expenses.

Revenue: Cincinnati Bell reported total revenue of $292.9 million outpacing our estimate by around $10.9 million.

Key States to Note: At the end of the first quarter of 2015, Cincinnati Bell had 0.2305 million residential local access lines, down 12.5% year over year and 0.2377 million business local access lines, down 6.9% year over year. Long distance lines were 0.3555 million, down 8.1%. DSL Internet subscribers were 0.1496 million, down 16.1%. Fioptics Internet customers were 0.1231 million, up a whopping 34.3%. Fioptics video subscribers were 0.0958 million, up 23.6% year over year.

Check back later for our full write up on this Cincinnati Bell earnings report later!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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