Cincinnati Bell (CBB) Tops Q3 Earnings and Revenue Estimates

Zacks

Cincinnati Bell Inc. CBB is a leading regional diversified telecommunications and technology service provider to both residential and business customers. The company operates its business through two segments: Entertainment and Communications and IT Services & Hardware.

Going forward, the company is poised to deliver stable financial results in the coming quarters, owing to its increased investments in strategic products, high-speed Internet offerings and higher managed service demand. The company’s Entertainment and Communications segment serves as the prime growth driver, backed by strength in the Fioptics business from continuous fiber deployment.

Recently, Cincinnati Bell recently received over $2.2 million in funding from the Federal Communications Commission’s (FCC) Connect America Fund II (CAFII) for the rollout of broadband services in rural areas. We believe that high-speed Internet service deployment in rural areas, by making optimal use of government funding, may help the company further strengthen its financial position.

Cincinnati Bell currently carries a Zacks Rank #1 (Strong Buy). The company has generated a positive average earnings surprise of 60.42% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: Cincinnati Bell reported third quarter adjusted earnings per share of 3 cents, higher than the Zacks Consensus Estimate of 2 cents.

Revenue: Cincinnati Bell reported total revenue of $299.8 million, outpacing the Zacks Consensus Estimate of $281 million.

Key States to Note: At the end of the third quarter of 2015, Cincinnati Bell had 0.2215 million residential local access lines, down 10.3% year over year and 0.307 million business local access lines, up 0.5% year over year. Long distance lines were 0.3446 million, down 7.2%. DSL Internet subscribers were 0.1377 million, down 15.9%. Fioptics Internet customers were 0.1436 million, up a whopping 34.6%. Fioptics video subscribers were 0.1088 million, up 23.9% year over year.

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

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