Consolidated Communications Holdings Reports Decline In Q4 Earnings Across Key Segments, Adjusted EBITDA Drops 14.7%
Portfolio Pulse from Anusuya Lahiri
Consolidated Communications Holdings Inc (NASDAQ:CNSL) reported a Q4 fiscal 2023 revenue decline of 7.0% Y/Y to $275.2 million, missing analyst expectations. Adjusted EPS showed a loss of $(0.26), which was better than the expected $(0.36) loss. Revenue declines were noted across Consumer, Commercial, and Carrier segments, with Adjusted EBITDA dropping 14.7% Y/Y to $86.7 million. CNSL's stock was slightly up by 0.12% at $4.29. Exposure to CNSL can also be gained through Invesco S&P SmallCap Utilities & Communication Services ETF (NASDAQ:PSCU) and Syntax Stratified SmallCap ETF (NYSE:SSLY).
March 05, 2024 | 5:09 pm
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NEUTRAL IMPACT
Consolidated Communications reported a Q4 revenue decline and a lower than expected adjusted EPS loss, with a slight increase in stock price.
Despite the revenue decline and EBITDA drop, the better-than-expected EPS loss and slight stock price increase suggest a neutral short-term impact. The market may have anticipated worse results.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Investors can gain exposure to CNSL through Invesco S&P SmallCap Utilities & Communication Services ETF (PSCU), which may be indirectly affected by CNSL's performance.
As an ETF that includes CNSL, PSCU's performance may be indirectly impacted by CNSL's financial health. However, the diversified nature of ETFs dilutes the direct impact of any single stock's performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Syntax Stratified SmallCap ETF (SSLY) provides another avenue for investment in CNSL, potentially impacted by CNSL's financial results.
SSLY, by including CNSL, may see indirect effects from CNSL's earnings report. The impact is mitigated by the ETF's diversified portfolio, making any single stock's performance less influential.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50