Cogent Earnings: What To Look For From CCOI

Internet service provider Cogent Communications (NASDAQ:CCOI) will be reporting results this Thursday before market hours. Here’s what investors should know.

Cogent missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $246.2 million, down 5.5% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates. It reported 118,730 total connections, down 7.8% year on year.

Is Cogent a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Cogent’s revenue to decline 4.3% year on year to $246.1 million, improving from the 6.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$1.22 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.

Looking at Cogent’s peers in the telecommunication services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lumen’s revenues decreased 4.2% year on year, beating analysts’ expectations by 0.9%, and Iridium reported revenues up 6.7%, topping estimates by 1.7%. Lumen’s stock price was unchanged after the resultswhile Iridium was down 8%.

Read our full analysis of Lumen’s results here and Iridium’s results here.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the telecommunication services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.4% on average over the last month. Cogent is down 6.6% during the same time and is heading into earnings with an average analyst price target of $47.73 (compared to the current share price of $39.96).

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