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Zayo (ZAYO) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Zayo Group Holdings, Inc. reported better-than-expected fourth-quarter fiscal 2018 results, wherein both the top line and bottom line beat the respective Zacks Consensus Estimate.
The company’s earnings came in at 18 cents per share, which surpassed the Zacks Consensus Estimate of 9 cents. Notably, the bottom line surged 38.5% from the year-ago tally of 13 cents. Earnings increased on the back of top-line growth.
Revenues came in at $657.6 million, up 3.1% year over year. Also, the reported figure beat the Zacks Consensus Estimate of $657.5 million. Improvement in the metric was driven by solid growth across most of its segments.
Zayo Group Holdings, Inc. Price, Consensus and EPS Surprise
Operating income was $120.2 million compared with $105.4 million in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased $14.1 million year over year to $324.9 million.
For fiscal 2018, the company’s operating income came in at $424.9 million, higher than the reported figure of $373.8 million in fiscal 2017.
Segmental Details
Revenues from the Fiber Solutions segment totaled $225.6 million, increasing 16.2% year over year. It represented 34.3% of the company's fiscal fourth-quarter revenues.
The Transport segment generated revenues of $169.9 million, up 2% year over year. It represented 25.8% of revenues for the reported quarter.
The Enterprise Networks segment's revenues were $85.0 million, up 1% year over year and accounted for 12.9% of the company's quarterly revenues.
Revenues at the Zayo Colocation segment were up 6.3% year over year to $60.3 million. It represented 9.2% of fiscal fourth-quarter revenues.
The Allstream segment generated revenues of $111 million, down 13.8% year over year. It represented 16.9% of revenues for the reported quarter.
The Other segment's revenues were $5.8 million, accounting for 0.9% of the company's fiscal fourth-quarter revenues.
Liquidity & Costs
As of Jun 30, 2018, Zayo’s cash and cash equivalents were $256.7 million compared with $220.7 million as of Jun 30, 2017. Net cash provided by operating activities was $251.8 million for the reported quarter compared with $244.9 million a year ago.
For fiscal 2018, the company’s total operating costs and expenses came in at $2,179.1 million, reflecting an increase of 19.3% year over year.
Analog Devices surpassed estimates in each of the trailing four quarters with an average beat of 7.83%.
AMETEK exceeded estimates in each of the trailing four quarters with an average beat of 6.42%.
Match Group surpassed estimates twice in the trailing four quarters with an average beat of 1.71%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Zayo (ZAYO) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Zayo Group Holdings, Inc. reported better-than-expected fourth-quarter fiscal 2018 results, wherein both the top line and bottom line beat the respective Zacks Consensus Estimate.
The company’s earnings came in at 18 cents per share, which surpassed the Zacks Consensus Estimate of 9 cents. Notably, the bottom line surged 38.5% from the year-ago tally of 13 cents. Earnings increased on the back of top-line growth.
Revenues came in at $657.6 million, up 3.1% year over year. Also, the reported figure beat the Zacks Consensus Estimate of $657.5 million. Improvement in the metric was driven by solid growth across most of its segments.
Zayo Group Holdings, Inc. Price, Consensus and EPS Surprise
Zayo Group Holdings, Inc. Price, Consensus and EPS Surprise | Zayo Group Holdings, Inc. Quote
Operating income was $120.2 million compared with $105.4 million in the year-ago quarter. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) increased $14.1 million year over year to $324.9 million.
For fiscal 2018, the company’s operating income came in at $424.9 million, higher than the reported figure of $373.8 million in fiscal 2017.
Segmental Details
Revenues from the Fiber Solutions segment totaled $225.6 million, increasing 16.2% year over year. It represented 34.3% of the company's fiscal fourth-quarter revenues.
The Transport segment generated revenues of $169.9 million, up 2% year over year. It represented 25.8% of revenues for the reported quarter.
The Enterprise Networks segment's revenues were $85.0 million, up 1% year over year and accounted for 12.9% of the company's quarterly revenues.
Revenues at the Zayo Colocation segment were up 6.3% year over year to $60.3 million. It represented 9.2% of fiscal fourth-quarter revenues.
The Allstream segment generated revenues of $111 million, down 13.8% year over year. It represented 16.9% of revenues for the reported quarter.
The Other segment's revenues were $5.8 million, accounting for 0.9% of the company's fiscal fourth-quarter revenues.
Liquidity & Costs
As of Jun 30, 2018, Zayo’s cash and cash equivalents were $256.7 million compared with $220.7 million as of Jun 30, 2017. Net cash provided by operating activities was $251.8 million for the reported quarter compared with $244.9 million a year ago.
For fiscal 2018, the company’s total operating costs and expenses came in at $2,179.1 million, reflecting an increase of 19.3% year over year.
Zacks Rank & Key Picks
Zayo currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Analog Devices, Inc. (ADI - Free Report) , AMETEK, Inc. (AME - Free Report) and Match Group, Inc. (MTCH - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices surpassed estimates in each of the trailing four quarters with an average beat of 7.83%.
AMETEK exceeded estimates in each of the trailing four quarters with an average beat of 6.42%.
Match Group surpassed estimates twice in the trailing four quarters with an average beat of 1.71%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>