Level 3 Q1 Profit Tops Expectations

reported upbeat earnings for its first quarter on Wednesday. For 2015, Level 3 also lifted its forecast for adjusted earnings before interest, taxes, depreciation and amortization. The Broomfield, Colorado-based company reported a quarterly profit of $122 million, or $0.35 per share, versus a year-ago profit of $112 million, or $0.47 per share. Its revenue climbed 28 percent to $2.05 billion. However, analysts were expecting earnings of $0.33 per share on revenue of $2.06 billion. The average estimate among 8 Estimize users was for earnings of $0.34 per share and revenue of $2.06 billion. Core network services revenue, excluding currency impacts, rose 6 percent in the quarter. Adjusted EBITDA climbed to $635 million, from $593 million. At the end of the first quarter, the deferred revenue balance was $1.195 billion, versus $1.208 billion at the end of 2014. As of March 31, 2015, Level 3 had $1.114 billion in cash and cash equivalents. "Level 3 had a solid start to the year, progressing on integration and generating profitable growth," said Jeff Storey, president and CEO of Level 3. "Customers are seeing the benefits of the acquisition, including our differentiated products and solutions, expanded network footprint and customer-first approach." The company now expects 2015 adjusted EBITDA to rise 14 percent to 17 percent, versus its prior outlook for a growth of 12 percent to 16 percent. Level 3 Communications shares rose 1.17 percent to $55.30 in pre-market trading.