General Communication plummets on 66% Q3 profit decline
General Communication, Inc. (Nasdaq: GNCMA) shares are plummeting after the Alaska-based communications provider reported third-quarter net income of $2.2 million, or $0.04 per share, far below analyst estimates of $0.14 per share and down 66% from $6.5 million, or $0.12 per share, a year earlier.
“Unfortunately our strong success in the marketplace was offset by continued challenges in our carrier business which is down significantly from the prior year. The reductions in carrier traffic and some sluggishness in our commercial sector overwhelmed the success of our consumer business to produce very disappointing financial results for the quarter,” Ron Duncan, General Communication’s president, said in a statement. "The carrier market has been volatile this year and we have confronted both pricing pressures and traffic shifts.”
Quarterly revenue grew to $133.9 million, from $125.1 million a year earlier but below Wall Street projections of $136 million.
After General Communication’s earnings release, Oppenheimer & Co. downgraded the company to “neutral” from “buy.”
In afternoon trading, GNCMA shares are down 25.75%, or $3.02, at $8.71. Over the last 52 weeks, shares have ranged from $8.65 to $16.10.
