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Cincinnati Bell (CBB) Incurs Loss in Q4

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Cincinnati Bell Inc. (CBB - Free Report) is a leading regional diversified telecom and technology service provider to both residential and business customers. The company operates through three segments: Wireline, IT Services & Hardware and Wireless.   

Cincinnati Bell continues to experience erosion in high-margin local access lines. Expansion and maintenance of its networks require significant capital expenditures. Intense competition in the company’s operational region can be a drag on the company’s pricing power, thereby inducing downward pressure on its margins.

Moreover, in third-quarter 2017, the company’s performance in certain operting metrics was quite disappointing. We expect the company to recover from these factors in the to-be-reported quarter.

However, we appreciate Cincinnati Bell’s efforts to transform itself from a telecom company into a technology company with fiber assets offering flexible data, video, voice and IP solutions to consumers and business clients.

Cincinnati Bell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has generated a positive average earnings surprise of a whopping 61.46% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Cincinnati Bell lags Q4 2017 earnings. Our consensus estimate called for adjusted earnings per share of 6 cents while the company reported adjusted loss per share (EPS) of 18 cents. Investors should note that these figures take out stock option expenses.

Revenue: Cincinnati Bell reported total revenues of $427.1 million missing our consensus estimate of $466.5 million.

Key States to Note: At the end of 2017, Cincinnati Bell had 0.1837 million residential voice lines, down 8.7% year over year and 0.3331 million business voice lines, up 3.3% year over year. Long distance lines were 0.2936 million, down 7.5%. DSL Internet subscribers were 0.0821 million, down 22.3%. Fioptics Internet customers were 0.2266 million, up 14.7%. Fioptics video subscribers were 0.1465 million, up 6.5% year over year.

Cincinnati Bell Inc Price and EPS Surprise

 

Check back later for our full write up on this Cincinnati Bell earnings report later!  

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