NEW YORK (TheStreet) -- Shares or Level 3 Communications (LVLT) were gaining 5.9% to $50.27 on Wednesday after the communications services company beat analysts' estimates for earnings in the third quarter.

On Tuesday, Level 3 reported earnings of 48 cents a share for the third quarter, beating analysts' estimates of 45 cents a share for the quarter. Revenue grew 1% year over year to $2.06 billion for the quarter, in line with analysts' estimates.

Core network services revenue grew 2.7% from the year-ago quarter to $1.95 billion, while wholesale voice and other revenue fell 19.4% to $116 million.

Level 3 said it now expects EBITDA growth of 15% to 17% for 2015, compared to its previous guidance of 14% to 17% growth.

"As we approach the one year mark of the tw telecom acquisition, we are pleased with the progress we have made as a combined company to strengthen Level 3's competitive position," President and CEO Jeff Storey said in a statement. "The continued transition in technology creates an ongoing opportunity for Level 3. We are continuing to invest in the business to position the company for the future."

TheStreet Recommends

TheStreet Ratings team rates LEVEL 3 COMMUNICATIONS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate LEVEL 3 COMMUNICATIONS INC (LVLT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and disappointing return on equity.

You can view the full analysis from the report here: LVLT

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