Dallas, Texas 05/01/2014 (FINANCIALSTRENDS) – Level 3 Communications, Inc. (NYSE:LVLT), provider of a range of integrated communications services, yesterday reported its 1Q14 earnings and posted its second quarterly profit since 2009. The company reported marginal increase of 2% in its quarterly revenue which increased to $1.61 billion. The company reported net profit of $112 million during 1Q14 ended March 31, 2014 as compared with a net loss of $78 million in 1Q13.
Earnings per share were reported at $0.47 per share in 1Q14 against ($0.36) in a same prior year quarter. This beat the street expectations as analysts were expecting revenue of approximately $1.59 billion and earnings of $0.27 per share, on an average.
Level 3 Communications, Inc. (NYSE:LVLT) raised its FY14 forecast for free cash flow and adjusted EBITDA growth following the release of its better than expected 1Q14 earnings. The company raised its free cash flow forecast from $225 – $275 million to $250 – $300 million. The company also raised its EBITDA to 14-18% compared to its previous forecast of 11-14% backed by higher revenue from its core network services.
President, Director and Chief Executive Officer of Level 3 Communications, Inc. (NYSE:LVLT), Jeffrey K. Storey mentioned during the management discussion, “We’re off to a good start this year, delivering another quarter of growth. Historically, our revenues declined in the first quarter because of end-of-year re-rates and seasonality. We saw those factors this year as well, but we’re able to offset the declines with continued growth from our enterprise customers, particularly in North America.”
Company Brief and Stock Update:
Level 3 Communications, headquartered in Broomfield, Colorado, offers facility based communications services including core network services as well as colocation and data center services. The company primarily serves in North America, Latin America, Africa, the Middle East and Europe.
Backed by its robust outlook the stock gained 15.95% during Wednesday’s trade and closed at $43.03. Among the largest percentage gainers, the stock was just second to Pepco Holdings, Inc. (NYSE:POM) which gained 17.42%.