Uncovering Potential: Cogent Comms Hldgs's Earnings Preview
Cogent Comms Hldgs (NASDAQ:CCOI) will release its quarterly earnings report on Thursday, 2025-08-07. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Cogent Comms Hldgs to report an earnings per share (EPS) of $-1.08.
Investors in Cogent Comms Hldgs are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Performance in Previous Earnings
During the last quarter, the company reported an EPS beat by $0.02, leading to a 0.75% drop in the share price on the subsequent day.
Here's a look at Cogent Comms Hldgs's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | -1.11 | -1.45 | -1.19 | -1.27 |
| EPS Actual | -1.09 | -0.91 | -1.33 | -0.68 |
| Price Change % | -1.0% | 1.0% | -2.0% | 4.0% |
Performance of Cogent Comms Hldgs Shares
Shares of Cogent Comms Hldgs were trading at $45.7 as of August 05. Over the last 52-week period, shares are down 35.31%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analyst Opinions on Cogent Comms Hldgs
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Cogent Comms Hldgs.
The consensus rating for Cogent Comms Hldgs is Buy, derived from 2 analyst ratings. An average one-year price target of $68.5 implies a potential 49.89% upside.
Peer Ratings Overview
The analysis below examines the analyst ratings and average 1-year price targets of and Iridium Communications, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Iridium Communications, with an average 1-year price target of $35.67, suggesting a potential 21.95% downside.
Peer Metrics Summary
The peer analysis summary provides a snapshot of key metrics for and Iridium Communications, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Cogent Comms Hldgs | Buy | -7.18% | $109.61M | -28.46% |
| Iridium Communications | Outperform | 7.88% | $152.00M | 4.43% |
Key Takeaway:
Cogent Comms Hldgs ranks lower in Revenue Growth compared to its peers. It also has lower Gross Profit margin. Additionally, its Return on Equity is negative, indicating lower profitability compared to peers.
All You Need to Know About Cogent Comms Hldgs
Cogent carries over one fifth of the world's internet traffic over its network and is a broadband provider for businesses. Cogent's corporate customers are in high-rise office buildings, where the firm provides two types of connections: dedicated internet access, which connects them to the internet, and virtual private networking, which offers an internal network for employees in different locations. Cogent's corporate customers are exclusively in North America and account for nearly half of the firm's revenue. Cogent's netcentric customers include internet service providers and content providers, to which Cogent provides internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the US.
Cogent Comms Hldgs's Financial Performance
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Challenges: Cogent Comms Hldgs's revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -7.18%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Communication Services sector.
Net Margin: Cogent Comms Hldgs's net margin is impressive, surpassing industry averages. With a net margin of -21.07%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Cogent Comms Hldgs's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -28.46%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Cogent Comms Hldgs's ROA stands out, surpassing industry averages. With an impressive ROA of -1.65%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a high debt-to-equity ratio of 16.53, Cogent Comms Hldgs faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for Cogent Comms Hldgs visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
