Knology, Inc.

Company Description

Knology provides broadband communication in the southeast U.S. Services included the popular bundled offerings of cable, phone, and Internet to businesses and residents.

Continued Growth

Knology reported first quarter results on May 8 that included a 3.3% increase in revenue. Growth in each of the 3 segments drove revenue to just under $105 million. The company added 8,752 connections during the quarter and also reduced customer turn-over.

Earnings per share came in at 5 cents, 9 cents better than the loss expected by Wall Street analysts. This is the first surprise in the past 4 quarters as the company can hopefully begin a new trend.

Triple-Digit Growth

After the great report analysts were quick to update forecasts. The consensus for 2009 is now 12 cents, up from a 6 cent loss. If met, this is a year-over-year growth rate of 136%.

Estimates for full-year 2010 are up 19 cents to 29 cents. which would be an annual growth rate of 138%.

The Chart

Shares of KNOL have been trending sideways in a very narrow trading range for several weeks now. It may take another great earnings report to breakout out of the channel. Take a look below.