Market Overview

UPDATE: D.A. Davidson Reiterates On EarthLink Following Solid Q3 Earnings

Share:

In a report published Wednesday, D.A. Davidson analyst James G. Moorman reiterated a Buy rating on EarthLink Holdings Corp. (NASDAQ: ELNK), and raised the price target from $4.50 to $5.00.

In the report, D.A. Davidson noted, “ELNK reported revenue of $297.7 million was $4-$5 million better than our estimate, but results included a one-time favorable revenue settlement of $6.8 million in transport. Business revenues were down 1.5% year-over-year (YoY) and Consumer revenues fell 10.7%. Normalizing for the revenue settlement in Q3, Business revenues declined 4.3% and customer churn increased slightly from 1.9% in Q2 to 2.0%. ELNK raised prices on small business last quarter and this accounted for the increase in churn. Consumer revenues exceeded our expectations and customer churn improved slightly to 2.2% compared to 2.3% in Q2. Adjusted EBITDA was $59.0 million, up 5.2% YoY and ahead of our $48.7 million estimate, and up from $50.9 million in Q2. ELNK had a $4.5 million income tax benefit for the reduction of reserves, resulting in a loss of $0.02. Excluding this one-time item, loss per share would have been $0.06.”

EarthLink closed on Tuesday at $4.09.

Latest Ratings for ELNK

DateFirmActionFromTo
Nov 2016DowngradesBuyHold
Oct 2016Initiates Coverage OnOutperform
Jun 2016DowngradesNeutralUnderweight

View More Analyst Ratings for ELNK
View the Latest Analyst Ratings

Posted-In: D.A. Davidson James G. MoormanAnalyst Color Price Target Analyst Ratings

 

Related Articles (ELNK)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Benzinga Breakfast Notes: Jefferies Lowers Priceline Price Target From $1,545 To $1,500

Sterne Agee Reviews Michael Kors Q2 Earnings