Internet service provider
swung to a first-quarter profit that beat expectations, and the company upped its full-year forecast.
The Atlanta, Ga.,-based company reported a first-quarter profit of $54.4 million, or 49 cents a share, compared with a loss of $30 million, or 24 cents a share, in the year-ago quarter. Results beat Wall Street's expectations for a profit of 33 cents a share.
Quarterly revenue, though, slipped to $263.1 million from $324.1 million a year earlier, a decrease of 18.8%. The Thomson First Call average estimate was for revenue of $265.1 million. Earthlink said it expected the decline in revenue after the company allowed its narrowband subscriber base to decline to a more sustainable customer level while generating significantly higher cash returns.
Earthlink also upped its full-year outlook. The company now expects net income in a range of $153 million to $163 million, which is in line with analysts' estimates. Earthlink also expects annual adjusted earnings before interest, taxes, depreciation and amortization (or EBITDA) to fall between $245 million and $260 million, compared with the Thomson First Call average estimate of $241.5 million.
Shares of Earthlink were rising by 35 cents, or 4.3%, to $8.47. Among other Internet-related telecom names,
Time Warner Cable
was off 0.1%,
gained 0.2% and
was tacking on 0.1%.
slipped 0.4%, while