Cogent Communications Holdings Earnings Calls

Q4 2024 (Upcoming)
Release date Feb 27, 2025
EPS estimate -$1.22
EPS actual -
Revenue estimate 258.485M
Revenue actual -
Expected change +/- 8.75%
Q3 2024 Beat
-$1.33 (0.746%)
Release date Nov 07, 2024
EPS estimate -$1.34
EPS actual -$1.33
EPS Surprise 0.746%
Revenue estimate 258.872M
Revenue actual 257.202M
Revenue Surprise -0.645%
Q2 2024 Beat
-$0.750 (42.75%)
Release date Aug 08, 2024
EPS estimate -$1.31
EPS actual -$0.750
EPS Surprise 42.75%
Revenue estimate 264.44M
Revenue actual 260.443M
Revenue Surprise -1.51%
Q1 2024 Missed
-$1.29 (-17.27%)
Release date May 09, 2024
EPS estimate -$1.10
EPS actual -$1.29
EPS Surprise -17.27%
Revenue estimate 271.81M
Revenue actual 266.168M
Revenue Surprise -2.08%

Last 4 Quarters for Cogent Communications Holdings

Below you can see how CCOI performed 4 days prior and 4 days after releasing the earnings report. Also, you can see the pre-estimates and the actual earnings. This information can give you a slight idea of what you might expect for the next quarter's release.

Q1 2024 Missed
Release date May 09, 2024
Fiscal end date Mar 31, 2024
Price on release $61.70
EPS estimate -$1.10
EPS actual -$1.29
EPS surprise -17.27%
Date Price
May 03, 2024 $63.07
May 06, 2024 $63.65
May 07, 2024 $63.07
May 08, 2024 $63.40
May 09, 2024 $61.70
May 10, 2024 $59.59
May 13, 2024 $59.11
May 14, 2024 $58.51
May 15, 2024 $58.69
4 days before -2.17%
4 days after -4.88%
On release day -3.42%
Change in period -6.94%
Q2 2024 Beat
Release date Aug 08, 2024
Fiscal end date Jun 30, 2024
Price on release $68.79
EPS estimate -$1.31
EPS actual -$0.750
EPS surprise 42.75%
Date Price
Aug 02, 2024 $66.85
Aug 05, 2024 $64.28
Aug 06, 2024 $67.35
Aug 07, 2024 $67.48
Aug 08, 2024 $68.79
Aug 09, 2024 $71.49
Aug 12, 2024 $71.81
Aug 13, 2024 $71.98
Aug 14, 2024 $72.27
4 days before 2.90%
4 days after 5.06%
On release day 3.92%
Change in period 8.11%
Q3 2024 Beat
Release date Nov 07, 2024
Fiscal end date Sep 30, 2024
Price on release $85.24
EPS estimate -$1.34
EPS actual -$1.33
EPS surprise 0.746%
Date Price
Nov 01, 2024 $81.62
Nov 04, 2024 $81.43
Nov 05, 2024 $81.58
Nov 06, 2024 $84.70
Nov 07, 2024 $85.24
Nov 08, 2024 $83.75
Nov 11, 2024 $80.45
Nov 12, 2024 $79.04
Nov 13, 2024 $78.64
4 days before 4.44%
4 days after -7.74%
On release day -1.74%
Change in period -3.65%
Q4 2024 (Upcoming)
Release date Feb 27, 2025
Fiscal end date Dec 30, 2024
Price on release -
EPS estimate -$1.22
EPS actual -
Date Price
Feb 06, 2025 $79.58
Feb 07, 2025 $80.39
Feb 10, 2025 $82.38
Feb 11, 2025 $81.89
Feb 12, 2025 $81.92

Cogent Communications Holdings Earnings Call Transcript Summary of Q3 2024

  • Financial Performance:
    • Total revenue for Q3 2024 was $257.2 million.
    • Significant impact from the grooming of low-margin off-net connections and a decline in revenues from the T-Mobile commercial services agreement, which dropped from $5.9 million in Q2 to $4.1 million.
    • Revenue from non-core products also saw a sequential decline.
    • Improved EBITDA by $8.7 million sequentially; EBITDA margin rose to 13.9%.
    • Adjusted EBITDA was $60.9 million for the quarter, reflecting a decline from the previous quarter.
  • Cost Savings and Synergies:
    • Achieved $165 million in cost savings (75% of the target) from the Sprint acquisition ahead of the expected timeline.
    • SG&A expenses decreased by 7.5% sequentially.
  • Traffic Growth and Customer Metrics:
    • Network traffic increased by 8% sequentially and 19% year-over-year.
    • Sales force productivity improved, with average orders per rep per month increasing to four.
  • Wavelength Services:
    • Wavelength revenue increased by 45.8% sequentially and 76.7% year-over-year.
    • Cogent aims to expand wavelength service capabilities to over 800 locations by year-end and is working to reduce provision times.
  • Dividend Increase:
    • Quarterly dividend raised to $0.995 per share, marking the 49th consecutive increase, representing a 4.2% annual growth rate.
  • Long-term Outlook:
    • Expect to achieve average long-term revenue growth of 5%-7% and adjusted EBITDA margins expansion of about 100 basis points annually.
    • Navigating increased debt ratios due to lower IP transit payments from T-Mobile, yet confident in future operational cash flow.
  • Asset Monetization Strategy:
    • Actively pursuing opportunities to monetize excess data center capacity, IPv4 addresses, and dark fiber assets.
    • Expecting ongoing discussions for both sales and leases, aligning with market demand for data center power.
  • Market Conditions for Data Centers:
    • The data center market is experiencing robust demand, and plans are in place for the conversion of Sprint facilities into operational data centers.
    • Significant interest in wholesale leasing versus outright sales due to increased market value of the power capacity available.
  • IPv4 Leasing Insights:
    • Revenue from IPv4 leasing grew 11.8% sequentially; price increases have been implemented, with expectations for continued growth.
  • Comments on Competition:
    • Cogent challenges the notion that the internet is declining or insufficient, emphasizing robust traffic and capacity growth despite competitors’ claims.
Implications for Investors:

Investors should note Cogent's strong cost-saving performance post-acquisition, growth in specific revenue streams like wavelength services and IPv4 leasing, and the proactive approach to monetizing assets, all of which contribute to a positive long-term outlook despite current challenges with legacy contracts and debt ratios. The steady dividend growth may also highlight the company's commitment to returning capital to shareholders.

Cogent Communications Holdings Earnings History

Earnings Calendar

FAQ

When is the earnings report for CCOI?
Cogent Communications Holdings (CCOI) has scheduled its earnings report for Feb 27, 2025 before the markets open.

What is the CCOI price-to-earnings (P/E) ratio?
CCOI P/E ratio as of Feb 12, 2025 (TTM) is 99.17.

What is the CCOI EPS forecast?
The forecasted EPS (Earnings Per Share) for Cogent Communications Holdings (CCOI) for the first fiscal quarter 2024 is -$1.22.

What are Cogent Communications Holdings's retained earnings?
On its balance sheet, Cogent Communications Holdings reported retained earnings of $257.20 million for the latest quarter ending Sep 30, 2024.

What Is an Earnings Report?
An earnings report is usually issued quarterly (Q1, Q2, Q3 & Q4) by public companies to report their performance. Earnings reports typically include net income, earnings per share, earnings from continuing operations, and net sales. Looking at the earnings report investors can start gauge the financial health of the company and make even better decisions whether to buy, sell, or stay in the company. Fundamental analysts and value investors will typically hunt for stocks that continue to show good financial ratios and use a decline as an exit point. One of the most anticipated numbers for analysis is earnings per share because it indicates how much the company earned for its shareholders. The report will also indicate a possible dividend.

Earnings Report Content
Earnings reports generally provide an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. These figures are typically measured against previous quarters/years. Furthermore, the earnings report usually includes a summary and analysis from the CEO or company spokesman, alongside a more general view of the financials and future forecast.

What To Know About Earnings Reports?
Announcement of earnings for a stock, particularly for well followed large-capitalization stocks, can move the market. Stock prices can fluctuate wildly on days when the quarterly earnings report is released. Despite good reports, stocks may very well fall if the investors were expecting more or they believe the next quarter will not be as good. Investors always try to be ahead of the market and future earnings/losses are often discounted into the current price of the stock. It is natural for stocks to start to move in either direction a few days before the release of an earnings report.
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ABOUT COGENT COMMUNICATIONS HOLDINGS
Cogent Communications Holdings
Cogent Communications Holdings, Inc., through its subsidiaries, provides high-speed Internet access, private network, and data center colocation space services in North America, Europe, Asia, South America, Australia, and Africa. The company offers on-net Internet access and private network services to law firms, financial services firms, and advertising and marketing firms, as well as heath care providers, educational institutions and other prof...
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