NEW YORK (TheStreet) -- Shares of Level 3 Communications (LVLT) are tumbling 6.79% to $52.19 on Wednesday morning after the company reported solid earnings, but lower-than-expected revenue for the 2016 second quarter.
Before today's market open, the Broomfield, CO-based Internet and telecom company said it had revenue of $2.06 billion. Analysts were projecting $2.08 billion.
Adjusted earnings of 53 cents per share surpassed analysts' estimates of 44 cents per share.
"With our focus on profitable growth combined with the strong operating leverage in the business, we continued to deliver expanded margins and improved profitability," CEO Jeff Storey said in a statement.
For 2016, Level 3 sees adjusted EBITDA rising 10% to 12% year-over-year and free cash flow of $1 billion to $1.1 billion for the full year.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: LVLT