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Cogent (CCOI) Down 3.7% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Cogent Communications (CCOI - Free Report) . Shares have lost about 3.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cogent due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Cogent Communications Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Cogent Reports Narrower-Than-Expected Q1 Loss Despite Lower Revenues
Cogent reported mixed first-quarter 2026 results, with the bottom line beating the Zacks Consensus Estimate while the top line missing the same.
This Washington, DC-based Internet service provider recorded lower year-over-year revenues, mainly due to ongoing weakness in legacy Sprint-related operations and off-net revenues, which offset gains in on-net and wavelength services.
Net Income
During the quarter, the company reported a net loss of $39.5 million or a loss of 83 cents per share compared with a net loss of $52 million or a loss of $1.09 per share in the year-ago quarter. Lower operating costs improved the bottom line and beat the Zacks Consensus Estimate by 20 cents.
Revenues
Service revenues decreased to $239.2 million from $247 million in the year-earlier quarter, owing to a decline in Off-Net revenues. The top line fell short of the Zacks consensus estimate of $239.4 million.
On-Net revenues in the quarter were $135.6 million, up from $129.6 million in the year-ago quarter. Revenues beat our estimate of $133 million. Customer connections of On-Net rose to 87,899 from 86,781.
Off-Net revenues were $89 million compared with $107.3 million in the year-earlier quarter. The segment's customer connections decreased to 24,014 from 27,508 in the year-ago quarter. Net sales miss our revenue estimate of $96.6 million.
Wavelength revenues were $13.6 million in the quarter, up from $7.1 million in the year-ago quarter. The segment's customer connections were 2,263, up from 1,322 in the prior-year quarter. Revenues miss our estimate of $14.1 million.
Non-core revenues were $1 million, down from $3 million in the year-ago quarter. The segment's customer connections were 2,633, down from 5,120 in the prior-year quarter. The company’s net-centric customer connections increased to 65,098 from 61,795 a year ago. Enterprise customer connections decreased to 9,808 from 13,641 a year ago.
Other Details
GAAP gross profit was $55.9 million, up from $33.6 million a year ago, with respective margins of 23.4% and 13.6%. Non-GAAP gross profit aggregated $110.3 million compared with $110.1 million in the year-ago quarter, with respective margins of 46.1% and 44.6%. Operating loss was $13.5 million compared with a loss of $40.3 million a year ago.
During the quarter, EBITDA was $45.2 million compared with $43.8 million a year ago, with respective margins of 18.9% and 17.7%. Adjusted EBITDA increased to $70.2 million from $68.8 million in the year-ago quarter, with respective margins of 29.3% and 27.8%.
Cash Flow & Liquidity
In the first quarter of 2026, Cogent generated $14.8 million of net cash from operating activities compared with $36.4 million in the year-ago quarter. As of March 31, 2026, the company had $179.3 million in cash and cash equivalents & restricted cash with $605 million of finance lease obligations (net of current maturities).
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted -24.38% due to these changes.
VGM Scores
Currently, Cogent has a poor Growth Score of F, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cogent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cogent belongs to the Zacks Wireless National industry. Another stock from the same industry, Verizon Communications (VZ - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Verizon reported revenues of $34.44 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.28 for the same period compares with $1.19 a year ago.
Verizon is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of +4.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Verizon. Also, the stock has a VGM Score of B.
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Cogent (CCOI) Down 3.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Cogent Communications (CCOI - Free Report) . Shares have lost about 3.7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Cogent due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Cogent Communications Holdings, Inc. before we dive into how investors and analysts have reacted as of late.
Cogent Reports Narrower-Than-Expected Q1 Loss Despite Lower Revenues
Cogent reported mixed first-quarter 2026 results, with the bottom line beating the Zacks Consensus Estimate while the top line missing the same.
This Washington, DC-based Internet service provider recorded lower year-over-year revenues, mainly due to ongoing weakness in legacy Sprint-related operations and off-net revenues, which offset gains in on-net and wavelength services.
Net Income
During the quarter, the company reported a net loss of $39.5 million or a loss of 83 cents per share compared with a net loss of $52 million or a loss of $1.09 per share in the year-ago quarter. Lower operating costs improved the bottom line and beat the Zacks Consensus Estimate by 20 cents.
Revenues
Service revenues decreased to $239.2 million from $247 million in the year-earlier quarter, owing to a decline in Off-Net revenues. The top line fell short of the Zacks consensus estimate of $239.4 million.
On-Net revenues in the quarter were $135.6 million, up from $129.6 million in the year-ago quarter. Revenues beat our estimate of $133 million. Customer connections of On-Net rose to 87,899 from 86,781.
Off-Net revenues were $89 million compared with $107.3 million in the year-earlier quarter. The segment's customer connections decreased to 24,014 from 27,508 in the year-ago quarter. Net sales miss our revenue estimate of $96.6 million.
Wavelength revenues were $13.6 million in the quarter, up from $7.1 million in the year-ago quarter. The segment's customer connections were 2,263, up from 1,322 in the prior-year quarter. Revenues miss our estimate of $14.1 million.
Non-core revenues were $1 million, down from $3 million in the year-ago quarter. The segment's customer connections were 2,633, down from 5,120 in the prior-year quarter. The company’s net-centric customer connections increased to 65,098 from 61,795 a year ago. Enterprise customer connections decreased to 9,808 from 13,641 a year ago.
Other Details
GAAP gross profit was $55.9 million, up from $33.6 million a year ago, with respective margins of 23.4% and 13.6%. Non-GAAP gross profit aggregated $110.3 million compared with $110.1 million in the year-ago quarter, with respective margins of 46.1% and 44.6%. Operating loss was $13.5 million compared with a loss of $40.3 million a year ago.
During the quarter, EBITDA was $45.2 million compared with $43.8 million a year ago, with respective margins of 18.9% and 17.7%. Adjusted EBITDA increased to $70.2 million from $68.8 million in the year-ago quarter, with respective margins of 29.3% and 27.8%.
Cash Flow & Liquidity
In the first quarter of 2026, Cogent generated $14.8 million of net cash from operating activities compared with $36.4 million in the year-ago quarter. As of March 31, 2026, the company had $179.3 million in cash and cash equivalents & restricted cash with $605 million of finance lease obligations (net of current maturities).
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted -24.38% due to these changes.
VGM Scores
Currently, Cogent has a poor Growth Score of F, a score with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cogent has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Cogent belongs to the Zacks Wireless National industry. Another stock from the same industry, Verizon Communications (VZ - Free Report) , has gained 1.1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Verizon reported revenues of $34.44 billion in the last reported quarter, representing a year-over-year change of +2.9%. EPS of $1.28 for the same period compares with $1.19 a year ago.
Verizon is expected to post earnings of $1.28 per share for the current quarter, representing a year-over-year change of +4.9%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Verizon. Also, the stock has a VGM Score of B.