Skip to main content

Market Overview

Consolidated Communications Stock Sheds On Q2 Revenue, EBITDA Decline

Share:
Consolidated Communications Stock Sheds On Q2 Revenue, EBITDA Decline
  • Consolidated Communications Holdings Inc (NASDAQ: CNSLreported a second-quarter FY21 revenue decline of 1.5% year-on-year to $320.4 million, beating the analyst consensus of $319.86 million.
  • Revenue from Commercial and Carrier revenue declined 1.4% Y/Y to $143.8 million, Commercial and Carrier data and transport grew 1.4% Y/Y to $1.2 million, Consumer declined 2.3% Y/Y to $124.95 million, Voice services fell 5.9% Y/Y to $5.3 million, Video services decreased $2.4 million.
  • Consumer broadband revenue increased 3.7% Y/Y to $2.4 million, Subsidies revenue declined 3.3% Y/Y to $17.5 million, Network access revenue rose 2.1% Y/Y to $31.1 million, and Other products and services revenue increased 4.4% Y/Y to $3.1 million.
  • Adjusted EPS of $0.09 beat the analyst consensus loss of $(0.03).
  • Adjusted EBITDA declined from 4.8% Y/Y to $126.7 million due to declines in voice and special access revenue combined with increased product marketing expense in upgraded fiber build areas partially offset by a $3 million increase in wireless partnership distributions. The margin declined 139 bps to 39.5%.
  • CNSL generated $87.3 million in operating cash flow and held $289.3 million in cash and equivalents.
  • Capital expenditures totaled $119.2 million, reflecting the fiber expansion plan and 76,000 upgrades completed in the quarter.
  • Performance in the first half of the year highlights strong execution on its fiber-first strategy and progress on the company's transformation likely to bring highly competitive, gigabit broadband services to over 70% of its footprint by 2025, CEO Bob Udell stated.
  • Outlook: CNSL sees FY21 capital expenditures between $400 million - $420 million, adjusted EBITDA of $500 million - $510 million.
  • The Q3 revenue consensus is $325.99 million, and the EPS consensus is $0.10.
  • Price action: CNSL shares traded lower by 11.8% at $7.83 on the last check Thursday.
 

Related Articles (CNSL)

View Comments and Join the Discussion!

Posted-In: Earnings News Guidance Short Ideas Small Cap Movers Tech Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
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