Cogent Communications Holdings, Inc. (NASDAQ:CCOI) Declares $0.02 Quarterly Dividend

Key Points

• Cogent Communications declared a quarterly dividend of $0.02 per share, payable September 4 to shareholders of record August 21. The payment implies an annualized dividend of $0.08 and a 0.7% yield, though the company’s negative earnings mean the dividend is not currently covered by profits.
• Cogent’s stock fell $1.96 to $10.91, near its 12-month low of $10.10 and well below its 12-month high of $45.69. The shares have also traded below both their 50-day and 200-day moving averages.
• Quarterly revenue declined 4.4% year over year to $235.56 million, missing estimates, while reported EPS of $1.38 exceeded the consensus estimate of a $1.00 loss. Analysts nevertheless expect a full-year loss of $4.25 per share.

Cogent Communications Holdings, Inc. (NASDAQ:CCOI - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Shareholders of record on Friday, August 21st will be given a dividend of 0.02 per share by the technology company on Friday, September 4th. This represents a c) annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Friday, August 21st.

Cogent Communications has increased its dividend payment by an average of 0.0%annually over the last three years and has increased its dividend every year for the last 14 years. Cogent Communications has a dividend payout ratio of -3.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Cogent Communications to earn ($3.41) per share next year, which means the company may not be able to cover its $0.08 annual dividend with an expected future payout ratio of -2.3%.

Cogent Communications Stock Performance

NASDAQ CCOI traded down $1.96 during trading on Thursday, hitting $10.91. 3,291,105 shares of the company's stock traded hands, compared to its average volume of 1,240,151. The stock has a market capitalization of $546.35 million, a price-to-earnings ratio of -3.07 and a beta of 0.80. Cogent Communications has a 12-month low of $10.10 and a 12-month high of $45.69. The business has a 50 day moving average of $14.03 and a 200-day moving average of $18.71.

Cogent Communications (NASDAQ:CCOI - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.00) by $2.38. The company had revenue of $235.56 million for the quarter, compared to analyst estimates of $239.55 million. Cogent Communications had a negative net margin of 17.53% and a negative return on equity of 842.48%. The company's quarterly revenue was down 4.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($1.21) earnings per share. On average, analysts expect that Cogent Communications will post -4.25 EPS for the current year.

Cogent Communications Company Profile

Cogent Communications NASDAQ: CCOI is a multinational Internet service provider specializing in high-speed Internet access and data transport services. The company operates one of the largest Tier 1 IP networks in the world, offering wholesale and enterprise customers reliable, low-latency connectivity. Cogent's core services include dedicated Internet access, Ethernet transport, wavelength services, and MPLS-based IP Virtual Private Networks, all delivered over its privately owned, fiber-optic backbone.

In addition to network connectivity, Cogent provides data center colocation and managed services designed to support businesses with demanding bandwidth and redundancy requirements.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source