NASDAQ$CCOI

Cogent Communications Holdings Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Cogent's Q2 2023 earnings were reported, including the Sprint Wireline Business, a $1.2 billion gain on bargain purchase, basic earnings per share of $23.84, and an increased regular quarterly dividend.

Cogent Communications reported a significant increase in service revenue for Q2 2023, driven by the acquisition of the Sprint Wireline Business. The company recorded a $1.2 billion gain on bargain purchase and increased its quarterly dividend.

  • Service revenue increased by 56.1% compared to the previous quarter and 61.5% year-over-year.
  • The company recorded a $1.2 billion gain on bargain purchase from the Sprint acquisition.
  • Basic net income per share was $23.84 for the quarter, including the impact of the bargain purchase gain.
  • Cogent's Board approved a regular quarterly dividend of $0.945 per share, an increase of $0.01 from the previous quarter.

Headline financials

Total Revenue

$240M

Previous: $148M+61.5%
EPS (adj)

-$0.67

Previous: $0.24-379.2%
Capital Expenditures

-$60.7M

Previous: -$35.4M-71.3%
Free Cash Flow

$1.07B

Previous: -$23.1M+4727.7%
Net Income

$1.13B

Previous: $12.3M+9086.3%
Operating Income

-$34.6M

Previous: $29.6M-217.0%
Gross Profit

$102M

Previous: $91.9M+11.3%
Cash & Equivalents

$192M

Previous: $312M-38.4%
Total Assets

$3.16B

Previous: $1.01B+211.7%

Revenue & EPS history

Cogent · Revenue · Quarterly

$240M

Q2 2023+61.5%vs Q2 2022
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Cogent · $240M total across 4 segments · Q2 2023

  • On-Net
    $128M+14.0%
  • Off-Net
    $102M+181.0%
  • Non-Core
    $8.6M
  • Wavelength
    $1.6M

Forward guidance

Cogent anticipates positive trends in its corporate business as vacancy rates decline and office occupancy rates rise, potentially leading to increased sales. However, the timing and extent of these positive trends remain uncertain.

Tailwinds

  • Declining vacancy rates in central business districts.
  • Rising office occupancy rates.
  • Positive trends in corporate business.
  • Integration of new applications from remote work environments.
  • Potential for increased sales as companies return to offices.

Headwinds

  • Deteriorating real estate market.
  • Slowdown in new sales to corporate customers.
  • Increased corporate customer turnover.
  • Fewer upgrades of existing corporate customer configurations.
  • Fewer new tenant opportunities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.6%

Avg return

Earnings day

-3.8%

Avg return

5 days after

-5.1%

Avg return

30 days after

41%

26 / 64 earnings

Positive

+19.3%

Q2 2023

Best reaction

-34.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-29.4%-28.1%-29.3%
Q4 2025-29.4%-29.7%-31.4%
Q3 2025-34.8%-46.2%-48.8%
Q1 2025-7.3%-3.6%-10.1%
Q4 2024-9.5%-11.0%-23.1%
Q3 2024-1.1%-6.7%-7.7%
Q2 2024+5.9%+6.7%+8.4%
Q1 2024-6.0%-7.7%-13.1%
Q4 2023-2.7%-9.6%-19.1%
Q3 2023-0.8%+2.2%+5.4%
Q2 2023+19.3%+22.3%+15.6%
Q1 2023-9.1%-12.0%-14.3%
Q4 2022-4.4%-1.4%-9.1%
Q3 2022+2.2%+3.0%+9.1%
Q2 2022-8.1%-8.7%-16.7%
Q1 2022-2.4%+3.5%-0.3%
Q4 2021+5.6%+3.4%+1.9%
Q3 2021-2.0%-0.8%-3.5%
Q2 2021+4.6%+2.7%+0.3%
Q1 2021+5.3%+10.2%+9.5%
Q4 2020-3.8%+1.2%+8.4%
Q3 2020-5.6%+2.8%+1.7%
Q2 2020-13.1%-21.1%-22.3%
Q1 2020-7.5%-11.2%-8.5%
Q4 2019-2.6%+8.4%+4.7%
Q3 2019+8.5%+12.9%+7.3%
Q2 2019-8.8%-7.7%-3.1%
Q1 2019+2.3%+2.6%+6.0%
Q4 2018+1.6%-3.2%+3.9%
Q3 2018-3.8%-1.6%-6.7%
Q2 2018-3.8%-4.5%+4.3%
Q1 2018-0.9%+1.1%+4.6%
Q4 2017-1.9%-3.2%-7.3%
Q3 2017-20.4%-14.0%-12.5%
Q2 2017+8.0%+6.4%+15.0%
Q1 2017-7.7%-4.1%-5.1%
Q4 2016+0.2%-2.4%-0.1%
Q3 2016+9.5%+14.4%+2.8%
Q2 2016-13.8%-14.2%-15.4%
Q1 2016+0.7%
Q4 2015+7.0%
Q3 2015+12.2%
Q2 2015-7.4%
Q1 2015-7.8%
Q4 2014-6.5%
Q3 2014+1.4%
Q2 2014-3.7%
Q1 2014-0.5%
Q4 2013-5.7%
Q3 2013+5.1%
Q2 2013+11.4%
Q1 2013+1.8%
Q4 2012+1.6%
Q3 2012-4.9%
Q2 2012+1.8%
Q1 2012-3.6%
Q4 2011+6.6%
Q3 2011+5.2%
Q2 2010-8.7%
Q2 2011-8.7%
Q1 2011+2.2%
Q4 2010-3.3%
Q3 2010+1.8%
Q1 2010+1.5%

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