D.A. Davidson Reiterates Neutral, Lowers Price Target On Consolidated Communications Following Q4 EPS Miss

In a report published Friday, D.A. Davidson analyst James G. Moorman reiterated a Neutral rating on

, but lowered the price target from $26.00 to $23.00. In the report, D.A. Davidson noted, "CNSL reported pro forma total revenues of $192.6 million, down 0.8% year-over-year (YoY). EBITDA was $80.6 million, down 2.1% compared to $82.3 million last year and roughly in line with our estimate of $80.9 million. EBITDA was impacted by declines in local calling and Network Access services. Sequential pro forma Residential line loss was 2.1% and business line loss was 1.6%. Data and internet connections grew 0.7% QoQ. Business and Broadband revenues—the two growth areas for CNSL— amounted to 80% of revenue. Reported pro forma loss per share was $0.12 compared to $0.04 earnings per share last year. Adjusting for one-time items, EPS was $0.16 vs. our estimate of $0.17 and consensus at $0.19. EPS was partially impacted by a lower cash distribution from its Verizon Wireless (VZ-$49.37) partnership due to handset and tablet subsidies and 2015 capex pulled forward." Consolidated Communications closed on Thursday at $21.84.