Cogent Communications (CCOI) May Report Negative Earnings: Know the Trend Ahead of Next Week's Release

Core Viewpoint - Cogent Communications (CCOI) is anticipated to report a year-over-year increase in earnings despite lower revenues for the quarter ending March 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to show a quarterly loss of $0.90 per share, reflecting a year-over-year change of +30.2%, while revenues are projected to be $250.18 million, down 6% from the previous year [3]. - The consensus EPS estimate has been revised 2.69% lower in the last 30 days, indicating a reassessment by analysts regarding the company's earnings outlook [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Cogent is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -15.64%, suggesting a bearish sentiment among analysts [10][11]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Cogent was expected to post a loss of $1.22 per share but actually reported a loss of $0.91, achieving a surprise of +25.41% [12]. - Over the past four quarters, the company has exceeded consensus EPS estimates three times [13]. Conclusion - Cogent does not appear to be a strong candidate for an earnings beat based on current estimates and trends, but investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16].