What's In Store For Cincinnati Bell (CBB) In Q4 Earnings?
Zacks Investment Research | Feb 12, 2018 11:20PM ET
Telecom service provider Cincinnati Bell (NYSE:CBB) is slated to report fourth-quarter 2017 results on Feb 15, before the market opens.
The Zacks Consensus Estimate for revenues is pegged at $466.53 million, reflecting year-over-year improvement of 63.5%. The Zacks Consensus Estimate is pegged at break-even earnings in the to-be-reported quarter.
Meanwhile, the company has a mixed earnings surprise history. Earnings lagged the Zacks Consensus Estimate in two of the previous four quarters and surpassed the same in the remaining two quarters, with an average beat of 61.46%
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence Q4 Earnings
We appreciate Cincinnati Bell’s efforts to transform itself from a legacy copper-based telecommunications company to an IT company with contemporary fiber assets, offering flexible data, video, voice and IP solutions to both consumer and business customers.
In the Entertainment and Communications business, the company’s investments in Fioptics products helped it to witness revenue growth and subscriber addition in third-quarter 2017. In this regard, the introduction of MyTV through its Fioptics high-speed Internet service bodes well. Additionally, increased investments in strategic products, the creation of a new business division for small and mid-sized businesses as well as the development of its IT Services and Hardware division have raked in more profits. We expect to see a similar uptrend in the Fioptics Internet and video segment in the to-be-reported quarter.
Its eero’s WiFi products should expand FTTH customer base. We appreciate the company’s decision to expand its call center base by hiring more workers. Buyout of OnX Enterprise Solutions will expand Cincinnati Bell’s network and enterprise IT services.
However, in the past three months, the company’s shares have declined 20.4% compared with the Earnings ESP Filter .
Zacks Rank: Cincinnati Bell has a Zacks Rank #3 which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Cincinnati Bell Inc Price and EPS Surprise
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