Cogent rescheduled its earnings call to earlier than usual so its CEO can make his date with Congress to talk about internet traffic. The short version: revenues were strong, earnings per share was not as much, and yes they raised the dividend by another penny and bought back a pile of stock. Here are Cogent's Q1 numbers in some context.
|$ in millions||Q1/13||Q2/13||Q3/13||Q4/13||Q1/14
|Earnings per share||0.01||0.03||0.05||1.10||0.00|
|Adj. EBITDA Margin||33.5%||34.5%||35.0%||35.0%||34.6%|
A strong quarter for on-net revenue helped boost Cogent's growth in the first quarter of 2014, while higher interest expenses helped push down earnings per share. Revenues came in a bit above expectations (mine and the street consensus), but breakeven earnings per share were a few pennies shy of analyst projections.
Operationally, Cogent passed the 2000 on-net building milestone as expected, adding 34 more during the quarter. They saw traffic levels increase 16% over Q4 and 69% over Q1 of last year. Headcount has continued to rise, reaching 724 by the end of March.
The dividend for Q2 went up another penny to $0.17, while $14.2M in cash went to stock buybacks.
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