Technology

Stock News Buzz: Cogent Communications Holdings (NASDAQ:CCOI)

On Thursday Cogent Communications Holdings (NASDAQ:CCOI) stock traded volume of 487904 shares during its last trading session as compared to its average volume of 208424 shares over the recent month. CCOI ended its day with the up stream along the move of 5.86% and closed at the price of $60.83 before opening at $60.1. It has total market capitalization is $2847811282. 52 week range of the stock remained $ 42.4 – 64.24 while its day lowest price was $59.08 and its hit its day highest price at $62.85m

Financial and Business Highlights

  • Cogent approved a $0.02 increase per share to its regular quarterly dividend to $0.64 per share for Q4 2019 from $0.62 per share for Q3 2019 – the twenty-ninth consecutive quarterly dividend increase.
    • The Q4 2019 $0.64 dividend per share represents an annual increase of 14.3% from the dividend per share of $0.56 for Q4 2018.
  • Service revenue, on a constant currency basis, increased by 1.7% from Q2 2019 to Q3 2019 and increased from Q3 2018 to Q3 2019 by 6.0%.
    • Service revenue increased by 1.6% from Q2 2019 to Q3 2019 and increased from Q3 2018 to Q3 2019 by 5.2%.
  • GAAP gross profit increased by 11.6% from Q3 2018 to $61.7 million for Q3 2019 and non-GAAP gross profit increased by 8.2% from Q3 2018 to $82.0 million for Q3 2019.
    • GAAP gross margin increased by 250 basis points from Q3 2018 to Q3 2019 to 45.0% and non-GAAP gross margin increased by 170 basis points from Q3 2018 to Q3 2019 to 59.9%.
  • SG&A expenses decreased by 6.7% from $38.6 million for Q2 2019 to $36.0 million for Q3 2019.
  • EBITDA increased by 7.6% from Q3 2018 to $50.5 million for Q3 2019 and increased by 7.2% from Q3 2018.
    • EBITDA margin increased by 80 basis points from Q3 2018 to 36.9% for Q3 2019 and increased by 200 basis points from Q2 2019.
  • Net cash provided by operating activities increased by 10.2% to $102.7 million for the nine months ended September 30, 2019 from the nine months ended September 30, 2018.

On Nov. 7, 2019, Cogent Communications Holdings (NASDAQ:CCOI) released service revenue of $136.9 million for the three months ended September 30, 2019, an increase of 5.2% from the three months ended September 30, 2018 and an increase of 1.6% from the three months ended June 30, 2019. Foreign exchange negatively impacted service revenue growth from the three months ended June 30, 2019 to the three months ended September 30, 2019 by $0.2 million and negatively impacted service revenue growth from the three months ended September 30, 2018 to the three months ended September 30, 2019 by $1.1 million.  On a constant currency basis, service revenue grew by 1.7% from the three months ended June 30, 2019 to the three months ended September 30, 2019 and grew by 6.0% from the three months ended September 30, 2018 to the three months ended September 30, 2019.

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