Consolidated Communications Hold Up 12.69% To $7.46 After Earnings Beat

Consolidated Communications Holdings Inc (CNSL) reported better than expected earnings this morning for Q2 2022.

Consolidated Communications Hold's earnings came in at an EPS of $0.01 per share, 150.00% higher than estimates for an EPS loss of $0.02 per share. The firm's earnings are down 89% since reporting $0.09 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Analyst projections for Consolidated Communications Hold revenue came in at a consensus of $296.3 million. Second-Quarter revenues surpassed estimates for $298.4 million by $2.1 million (1%). The company achieved negative 7% growth year-over-year compared to the firm's revenue of $320.4 million from the year-ago quarter. The lower earnings growth relative to revenue signals Consolidated Communications Hold has not been able to improve its profit margin.

The stock is up 12.69% to $7.46 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Sell which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 58. Meanwhile, the average Wall Street analyst rated the stock a Sell.

Consolidated Communications Holdings Inc provides communication services for business and residential customers across various states in the U.S. Its business product suite includes data and Internet solutions, voice, data center services, security services, managed and IT services, and an expanded suite of cloud services. It provides wholesale solutions to wireless and wireline carriers and other service providers including data, voice, network connections, and custom fiber builds and last-mile connections. It offers residential high-speed Internet, video, phone, and home security services as well as multi-service residential and small business bundles.