Why Level 3 Communications (LVLT) Stock Is Gaining Today

NEW YORK (TheStreet) -- Level 3 Communications (LVLT) was gaining 9.6% to $40.66 Wednesday after beating analysts' earnings and revenue in the first quarter and raising its EBITDA forecast for 2014.

For the first quarter Level 3 reported earnings of 47 cents a share, beating Capital IQ Consensus Estimate of 27 cents by 20 cents. Revenue rose 2% from the year to $1.61 billion, beating analysts' estimates of $1.59 billion.

Looking to the full-year the communications company now expects adjusted EBITDA to brow 14% to 18%, up from its previous guidance of 11% to 14% growth. Level 3 also raised its Free Cash Flow estimates for the year to between $250 million and $300 million, up from between $225 million and $275 million.

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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 solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."

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