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Cogent (CCOI) reports earnings tomorrow: what to expect

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Internet service provider Cogent Communications (NASDAQ: CCOI) will be reporting earnings this Thursday before market hours. Here’s what investors should know.

Cogent missed analysts’ revenue expectations last quarter, reporting revenues of $235.6 million, down 4.3% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates.

Is Cogent a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Cogent’s revenue to decline 2.9% year on year, improving from the 5.9% decrease it recorded in the same quarter last year.

Cogent total revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.

Looking at Cogent’s peers in the telecommunication services segment, only Iridium has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 8.3%. The stock price was unchanged following the results.

Read our full analysis of Iridium’s earnings results here.

Investors in the telecommunication services segment have had steady hands going into earnings, with share prices flat over the last month. Cogent is down 32.6% during the same time and is heading into earnings with an average analyst price target of $15.09 (compared to the current share price of $5.98).

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