If you bought Level 3 (LVLT) shares a year ago, you lost. The stock closed at $5.68 last May 2. It now trades at $5.38. When the stock hit $6.76 in February, it all looked so promising.
The revenue figure for the quarter just released is tricky. The company says revenue rose from $822 million in the same quarter a year ago to $1.056 billion in the just reported quarter. But, Level 3 bought Broadwing in the meantime. And revenue from that company put $236 million into the pot. So, the real growth is in the region of nil.
The company has a bad habit of comparing the first quarter of 2007 to the fourth quarter of 2006. To get the actual quarter-over-last-year-quarter, investors have to dig. It shows that operating income got worse, going from a loss of $57 million last year to $75 million this year. Net income went from a negative $168 to a loss of $647, mostly because of charges the company had to take to refinance debt.
Level 3 also forecast flat revenue for Q2.
Level 3’s management has a long-time habit of cutting its own throat. Refinancing debt improved that balance sheet and moved the stock up recently. But, with poor operating results, who cares?
Douglas A. McIntyre
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.