Cogent Communications misses Q2 net loss per share estimates; increases stock buyback
Overview
Cogent Q2 service revenue falls 0.3% sequentially, 5.5% yr/yr
Net loss per share of $1.21 misses analyst expectations
The multinational internet service provider increases quarterly dividend, expands stock buyback by $100 mln
Outlook
Cogent did not provide specific future revenue or EPS guidance
Company increased quarterly dividend to $1.015 per share for Q3 2025
Cogent expanded stock buyback program by $100 mln through 2026
Result Drivers
WAVELENGTH GROWTH - Wavelength revenue increased by 27.2% sequentially and 149.8% yr/yr, driven by expanded service offerings
IPV4 LEASING - Revenue from leasing IPv4 addresses rose by 6.3% sequentially and 40.1% yr/yr, contributing to overall revenue
OFF-NET DECLINE - Off-net revenue decreased by 4.8% sequentially and 8.3% yr/yr, impacting total service revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Net Income | -$57.81 mln | ||
Q2 Gross Margin | 13.6% | ||
Q2 Basic EPS | Miss | -$1.21 | -$0.93 (11 Analysts) |
Q2 EBIT | Miss | -$31.46 mln | -$27.40 mln (9 Analysts) |
Q2 Adjusted Gross Margin | 44.4% | ||
Q2 Adjusted Gross Profit | $109.26 mln | ||
Q2 EBITDA | $48.50 mln | ||
Q2 Gross Profit | $33.46 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Cogent Communications Holdings Inc is $74.50, about 41.1% above its August 6 closing price of $43.88
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