CCOI Earnings Prediction
The chart below shows how CCOI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CCOI sees a -0.45% change in stock price 10 days leading up to the earnings, and a -1.65% change 10 days following the report. On the earnings day itself, the stock moves by -0.03%. This data can give you a slight idea of what to expect for the next quarter's release.
CCOI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
257.20M
-6.62%
-1.24%
Gross Margin
3.82%
-30.29%
-67.10%
Operating Margin
-22.48%
23.31%
53.66%
Net Margin
-24.54%
19.18%
97.58%
EPS
-1.33
-10.83%
95.59%
No Data Available
CCOI Earnings Analysis
Cogent Communications Holdings, Inc. Corporation (CCOI.O) Earnings Conference Call
Positive
Cost Savings Achievement: 1. Significant Cost Savings Achieved: Cogent has realized $165 million in cost savings, which is approximately 75% of the targeted $220 million in annual cost savings from the Sprint acquisition, ahead of schedule.
Wavelength Services Revenue Surge: 2. Strong Revenue Growth in Wavelength Services: Wavelength revenues increased sequentially by 45.8% to $5.3 million and saw a year-over-year increase of 76.7%.
IPv4 Leasing Revenue Surge: 3. Increase in IPv4 Leasing Revenue: IPv4 leasing revenue rose sequentially by 11.8% to $12.8 million, marking a 31.5% increase year-over-year.
EBITDA Margin Improvement: 4. Improved EBITDA Margin: EBITDA increased sequentially by $8.7 million, with the EBITDA margin rising by 350 basis points to 13.9% for the quarter.
Dividend Increase Announcement: 5. Quarterly Dividend Increase: The quarterly dividend was increased by $0.01 per share, marking the 49th consecutive sequential increase, representing a 4.2% annual growth rate.
Negative
Revenue Decline Analysis: 1. Decline in Revenue: Total revenue decreased by $1.8 million sequentially from the commercial services agreement with T-Mobile, and an additional $3.5 million decline was attributed to the termination of a low-margin resale customer contract, leading to a total revenue impact of $5.7 million.
EBITDA Decline Analysis: 2. Significant Drop in EBITDA: EBITDA as adjusted fell to $60.9 million with a margin of 23.7%, down from $106.2 million and 40.8% in the previous quarter, primarily due to a $41.7 million reduction in payments under the IP Transit Services Agreement with T-Mobile.
Debt Ratio Increase: 3. Increased Debt Ratios: The gross debt to trailing twelve months EBITDA as adjusted ratio rose to 4.94, while the net debt ratio increased from 3.14 to 4.13, reflecting the impact of reduced IP transit payments.
Revenue Decline Analysis: 4. Decline in Corporate Revenue: Corporate revenue decreased by 3.5% year-over-year and 2.8% sequentially, primarily due to the grooming of low-margin off-net connections and the elimination of non-core products.
Bad Debt Expense Increase: 5. Increase in Bad Debt Expense: Bad debt expense rose to $4.5 million, representing 1.8% of revenues for the quarter, attributed to collection issues with a large former Sprint customer.
CCOI FAQs
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CCOI Earning Call Sentiment
Cogent Communications Holdings, Inc. (CCOI) Q3 2024 Earnings Call Transcript
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00:00
00:00
CCOI.O
0.11%Positive
The earnings call highlights several negative factors: a decrease in total revenue, a significant drop in EBITDA margin, and increased debt ratios. Although there are positive aspects, such as a dividend increase and growth in wavelength revenue, these are overshadowed by the decline in financial metrics and lack of clear guidance. Additionally, management's vague responses during the Q&A session further contribute to uncertainty. Given the company's market cap, the stock price is likely to react negatively, falling between -2% to -8% over the next two weeks.
