CBEY - Cbeyond, Inc - reported fourth-quarter earnings that blew away forecasts by 300%

Cbeyond has crushed analyst expectations in each of the past three quarters by an average margin of about 350%. Five analysts have raised their estimates for this year, while three have done so for next year. Over the past month, 2007 estimates have increased eight cents to 46 cents per share, while this quarter's numbers have jumped 50% to nine cents per share. Analysts project that the company can generate long-term earnings growth of 23%. Full Analysis Cbeyond, Inc. (CBEY), through its subsidiaries, provides managed voice over Internet protocol-based communications services to small and medium-sized businesses in Los Angeles, Atlanta, Dallas, Denver, Houston, and Chicago. Its services include local and long distance voice services, broadband Internet access, email, voicemail, Web hosting, secure backup and file sharing, fax-to-email, virtual private network, and other communications and information technology services. The company also offers mobile voice and data services via its mobile virtual network operator relationship with a nationwide wireless network provider. It offers these services primarily through its direct sales force, as well as through channel partners. The company was founded in 1999. It was formerly known as Egility Communications, Inc. and changed its name to Cbeyond Communications, Inc. in 2000. Cbeyond reported fourth-quarter earnings that blew away forecasts by 300%. Earnings per share came in at 16 cents compared to four cents projected by analysts. Revenue rose 33% to $58.9 million from $44.4 million. Cbeyond expects 2007 sales between $275 million and $280 million. Analysts estimate $276 million. "Our fourth quarter results illustrate the power of Cbeyond's business model," said Jim Geiger, chief executive officer of Cbeyond. "We executed on steadily growing customer additions, continued low monthly churn at 1.0%, and steadily increasing applications used per customer of 5.6. We were particularly pleased to maintain stable ARPU of $742, despite the typical fourth quarter seasonality factors and ongoing reductions in the government-mandated rates we charge for terminating long distance calls." "Furthermore, Chicago notched its first full quarter of positive adjusted EBITDA, and we have strong expectations for that market going forward. Not only do we now have five of our seven markets consistently generating positive adjusted EBITDA, but these markets are collectively increasing at a rapid rate." Cbeyond has crushed analyst expectations in each of the past three quarters by an average margin of about 350%. Five analysts have raised their estimates for this year, while three have done so for next year. Over the past month, 2007 estimates have increased eight cents to 46 cents per share, while this quarter's numbers have jumped 50% to nine cents per share. Analysts project that the company can generate long-term earnings growth of 23%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home