Level 3 Communications’ stock tumbled nearly 13 percent in early trading today after the Broomfield-based company issued third-quarter financial projections below analyst estimates.
The company also said that it had a net loss of $202 million, or 13 cents a share, in the second quarter from continuing operations, compared with a loss of $224 million, or 25 cents a share, during the same quarter a year ago.
Level 3 shares fell 73 cents to $4.99.
JP Morgan analyst Jonathan Chaplin said in a research note today that core communications revenue was weaker than expected and the company’s third quarter “guidance is somewhat disappointing.”
Level 3 reported core communications revenue of $888 million, compared with a projection of $890 million to $910 million.
The company, which operates a global fiber-optic communications network that provides high-speed Internet connections for businesses, said its third quarter core revenue would range from $905 million to $925 million.
UBS analyst John Hodulik said in a note today that he had previously forecasted the company to post $960 million in core revenue in the third quarter.
For the second quarter, Level 3 posted total revenue of $1.05 billion, up from $835 million during the same quarter a year ago.
Level 3 has acquired a number of companies over the past two years, including the recent purchase Irish video streaming company ServeCast for $45 million.
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
