Alaska Communications Systems Group, (NASDAQ: ALSK)‘s stock had its “underperform” rating reaffirmed by Bank of America in a research note issued on Wednesday.
The analysts wrote, “Alaska Communications’ 4Q results show it to be executing on a plan to invest in and grow the Business & Wholesale wireline segment. Both the benefit (accelerating growth) and the cost (margin pressure) of this effort were evident in 2012 results and we expect a similar focus in 2013. After investing in wireline business, management has been clear that it will use excess cash to reduce leverage and any near term upside, including distributions from the AWN transaction, will go towards paying down debt rather than rewarding equity holders. We reiterate our underperform rating and $1 price objective which is based on a 4.7x ’14E EV/EBITDA multiple, a discount vs. the RLEC average of 5.0x that we view as appropriate for a wireline business with limited near term growth potential and no dividend yield.”
Shares of Alaska Communications Systems Group, traded down 5.14% during mid-day trading on Wednesday, hitting $1.66. Alaska Communications Systems Group, has a 52 week low of $1.57 and a 52 week high of $3.44. The stock’s 50-day moving average is currently $1.80. The company has a market cap of $75.8 million and a P/E ratio of 4.61.
Alaska Communications Systems Group, last issued its quarterly earnings data on Thursday, February 28th. The company reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.11. The company had revenue of $95.10 million for the quarter, compared to the consensus estimate of $88.70 million. During the same quarter in the previous year, the company posted $0.05 earnings per share. The company’s revenue for the quarter was up 8.7% on a year-over-year basis. On average, analysts predict that Alaska Communications Systems Group, will post $0.24 earnings per share for the current fiscal year.
Alaska Communications Systems Group, Inc. (ACS) provides integrated communications services in Alaska.
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