Global Crossing (GLBC), a New Jersey based telecommunications carrier announced that it had earned $1 million during its fiscal further quarter for 2007. While this might seem like a small profit, it was a huge improvement of the $90 million loss the company suffered during the same quarter in 2006.
Increased Internet and corporate networking sales were noted as being leading contributors to the strong improvement from 2006 to 2007. Total sales went from $488 million to $616 million, a rise of 26% from last year’s fourth quarter to this year’s. According to Thomson Financial, analysts had estimated $608.3 in sales. The stock investing community was inspired by the superior revenue.
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Labeled “invest and grow,” the company’s focus on increasing its internet carrier and corporate networking sales lead to 44% growth in these areas, with a total of $504 million in sales. This improvement was good for long-term stock trading investors.
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In addition to its fourth quarter numbers, the company share results for the fiscal 2007 year. In spite of the fourth quarter gain, the company did suffer a $310 million loss for the year. The good news is that this was a strong improvement over the 2006 report of a $327 million loss. Sales rose from $1.8 billion to $2.26 billion.
Cover call rules of thumb suggest covered call investing may subside given the company’s projection of a more stable industry in the coming year. Company leaders said they expect widespread industry improvement in wholesale communications next year. This is definitely great news for those with a long-term investment strategy.
With a one year analyst target of $25.20, the company’s stock seems to have room for growth, given its current position just below $20. Investors looking for opportunities for high returns on investment from their trading portfolio quickly snapped up the stock after hours following the announcement. The stock was up over 2% after hours following the earnings announcements.
In investing terms, future outlook is often more impacting on investing strategies than current events. Global Crossing gave investors hope by suggesting 2008 revenue should top analyst estimates. The company projects sales of $2.57 billion to $2.67 billion for 2008, while analysts have estimated $2.51 billion.
Investors performing stock investing research have likely been impressed by the strong recovery by Global Crossing since its 2002 bankruptcy filing. The company has since grown into a leading internet service carrier and multinational corporate networking service provider.
Potential for growth in telecommunications may be somewhat dependent on improvement in US and global economic conditions. Global Crossing, in particular, needs to see business expansion and investment that leads to increased technology and telecommunications reliance. Based on its earnings projections and outlook for 2008, the company seems hopeful that things could get better later in the year. Analysts seem mixed based on their assessment of various industries and companies.
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