Is Level 3 Communications Taking Advantage Of The Opportunity Laid Before It? – Part 2

Our November 2013 article, “Can Level 3 Communications Take Advantage Of The Opportunity Laid Before It?”,  we examined past and future growth of the internet and how this could be a catalyst Level 3 Communications (LVLT) was built for.  Some topics discussed were:

  • Company background
  • Catalysts fueling future demand
  • Data from several internet studies
  • Valuation and risk

Instead of repeating the above topics which would make this article exorbitantly long it’s recommended you read it for a better understanding, although not mandatory for this article.  This article is a follow up examining level 3’s results and guidance to see if there is evidence Level 3 is capitalizing on the growing need for bandwidth.

Level 3 announced fourth quarter results and issued 2015 guidance on February 5, 2014. Ongoing trends based on management’s record and guidance will be a strong indicator of management’s success (or lack thereof) of converting opportunity into growing profits and cash generation.  This article discusses the following:

  • Revenue and focus
  • Trends
  • Valuation revisited
  • Risks
  • Final thoughts


It’s important to understand how Level 3 reports revenue and their revised focus aimed directly at the opportunities ahead. This also will make clear why some missed the underlying growth momentum buried among other revenue categories; becoming more obvious with each earnings announcement leading some analysts to dramatically boost price targets.
…Click Here To Continue To The Full Article…


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