D.A. Davidson Expects Solid Quarter for EarthLink

In a report published Tuesday, D.A. Davidson analyst James G. Moorman reiterated a Buy rating and $5.00 price target on

. In the report, D.A. Davidson noted, "For Q4, we are expecting revenue of $283.8 million, adjusted EBITDA of $49.3 million, and a loss per share of $0.10. Our estimates compare with the Thomson First Call consensus estimates for revenue of $283.4 million, EBITDA of $49.8 million, and a loss per share of $0.13. We expect business revenue to decline 4.2% YoY and 4.8% QoQ." The report continued, "For consumer revenue, we forecast a 12.2% YoY decline and a 4.3% QoQ decline. We are expecting the EBITDA margin to expand to 17.4%, from 16.6% a year ago. EBITDA is a metric that the company could beat due to the extensive cost-cutting that it has been doing." EarthLink Holdings Corp. closed on Friday at $4.54.