Cincinnati Bell Earnings: Here’s Why the Stock is Falling Now
Cincinnati Bell Inc. (NYSE:CBB) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.27%.
Cincinnati Bell Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.06 in the quarter versus EPS of $0.03 in the year-earlier quarter.
Revenue: Rose 2.57% to $374.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Cincinnati Bell Inc. reported adjusted EPS loss of $0.06 per share. By that measure, the company missed the mean analyst estimate of $0.05. It beat the average revenue estimate of $367.72 million.
Quoting Management: Ted Torbeck, president and chief executive officer, stated, “In 2012, Cincinnati Bell delivered solid financial results while executing on a data center strategy that positions us to significantly reduce debt and fundamentally change Cincinnati Bell’s future leverage profile. As the new CEO of Cincinnati Bell, I am honored to be leading a company with a very strong foundation from which to build. While challenges exist, our growth initiatives are clear. Our fiber investments are delivering strong results, and are approaching an inflection point. In 2013, we will increase capital investment to accelerate our fiber deployment to consumers and businesses in Cincinnati. As a result, we believe we can return our Wireline business to growth in 2014.”
Key Stats (on next page)…