COGENT COMMUNICATIONS Reports Second Quarter FY2023 Earnings on June 30, 2023
August 16, 2023
🌥️Earnings Overview
COGENT COMMUNICATIONS ($NASDAQ:CCOI) reported their earnings results for the second quarter of FY2023 ending June 30th 2023. There was a noticeable improvement compared with the same quarter the previous year, with total revenue increasing by 61.5% to USD 239.8 million and net income rising to USD 1123.9 million from USD 11.2 million.
Price History
As the company released its quarterly report, its stock opened at $58.2 and closed at $58.4, which marked a 0.3% increase from its previous closing price of $58.2. This slight increase can be attributed to investors’ confidence in the company’s strong performance in the past quarter. The company’s strong performance was driven by increasing demand for its services in the telecommunications industry as well as its strategic investments in the past year. COGENT COMMUNICATIONS also announced plans to expand its presence in the North American market and to invest more heavily in research and development over the course of FY2023.
Overall, investors seemed pleased with COGENT COMMUNICATIONS’ second quarter FY2023 results. The company’s stock experienced a slight increase after the release of its quarterly earnings report, reflecting investor’s confidence in its future performance. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Cogent Communications. More…
| Total Revenues | Net Income | Net Margin |
| 695.38 | 1.12k | 63.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Cogent Communications. More…
| Operations | Investing | Financing |
| 208.37 | -89.08 | -227.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Cogent Communications. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.16k | 2.62k | 11.09 |
Key Ratios Snapshot
Some of the financial key ratios for Cogent Communications are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.5% | -22.8% | 172.9% |
| FCF Margin | ROE | ROA |
| 15.0% | -16082.2% | 23.8% |
Analysis
GoodWhale’s analysis of COGENT COMMUNICATIONS shows strong performance in dividend and growth, and medium performance in profitability. Its Asset score is a bit weaker than the rest. In terms of financial health, COGENT COMMUNICATIONS scores an 8 out of 10, which indicates that it has the ability to withstand any economic crisis and remain stable without the risk of bankruptcy. Given these metrics, GoodWhale classifies COGENT COMMUNICATIONS as a ‘cheetah’ company, which is one that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors who are looking for such high-growth companies may be interested in this stock. More…
Peers
The company provides data, voice, and video services to business and residential customers in over 200 markets in the United States, Canada, Europe, the Middle East, and Asia. Cogent’s network is one of the largest and most expansive in the world, reaching over 193 countries and connecting over 46,000 on-net buildings. The company has over 3,000 employees and is headquartered in Washington, D.C. Cogent’s main competitors are Pentanet Ltd, Quadrant Televentures Ltd, AT&T Inc.
– Pentanet Ltd ($ASX:5GG)
Pentanet Ltd is an Australian telecommunications company. The company provides broadband internet, VoIP, and mobile phone services to residential and business customers. Pentanet Ltd has a market capitalization of $76.91 million as of 2022 and a return on equity of -13.09%. The company has been in operation since 2014 and is headquartered in Perth, Western Australia.
– Quadrant Televentures Ltd ($BSE:511116)
Quadrant Televentures Ltd is an Indian telecommunications company. The company provides mobile and fixed-line voice and data services, broadband, and enterprise services to consumers and businesses in India. As of March 31, 2021, the company had a market cap of $869.41 million and a return on equity of 0.14%. Quadrant Televentures was founded in 1996 and is headquartered in Mumbai, India.
– AT&T Inc ($NYSE:T)
AT&T Inc. is an American multinational conglomerate holding company headquartered at Whitacre Tower in Downtown Dallas, Texas. AT&T is the world’s largest telecommunications company, the second largest provider of mobile telephone services, and the largest provider of fixed telephone services in the United States through AT&T Communications. Since June 14, 2018, it also became the parent company of mass media conglomerate WarnerMedia, making it the world’s largest entertainment company in terms of revenue. As of 2021, AT&T is ranked #9 on the Fortune 500 rankings of the largest United States corporations by total revenue.
Summary
Cogent Communications achieved impressive financial results in the second quarter of FY2023, with total revenue increasing 61.5% to USD 239.8 million and net income increasing to USD 1123.9 million from USD 11.2 million year-over-year. This indicates a strong upward trend in Cogent’s performance, making it a compelling investment opportunity for investors. Long-term investors should consider the company’s strong fundamentals, such as high customer retention rates and competitive advantages in its markets, when making a decision. For short-term investors, Cogent’s recent performance and projected future growth are good indicators of potential returns.
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