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Wednesday, September 27, 2023

Consolidated Communications Holdings, Inc. (CNSL) Stock Rising Despite No Obvious Reason

Consolidated Communications Holdings, Inc. (CNSL), a company that provides telecommunications services to business and residential customers through its subsidiaries in the United States, has surged 7.12% in aftermarket trading session. Consequently, CNSL is trading at $7.82 at the time of the writing. The stock is on a surge despite all the indicators pointing toward a negative trajectory for the stock. On Wednesday, the stock closed the day at $7.30 after declining by 1.22% during regular trading hours. Let’s discuss some recent developments related to CNSL.

Q3 2021 Operational Results

In late October, CNSL released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September 2021. The company generated net revenue of $318.58 million during the quarter against $327.06 million for the same quarter of 2020. The income generated from the operations stood at $32.5 million during the three months against $37.3 million for the same three-month period of 2020. The net loss suffered by the company during the period was $4.48 million (or $0.05 per basic and diluted share) against the net income of $14.58 million (or $0.20 per basic and diluted share) for the same period of 2020.

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CNSL Financial Scenario

Alongside the operational results, CNSL also released the financial results for the period ended on 30th September. The company had cash and cash equivalents of $98.68 million on the 30th of September. The total current assets in possession of the company on the said date were $471.18 million, while the total assets were estimated to be $3.72 billion. The current liabilities payable by the company on 30th September were $321.07 million, while the total liabilities were $3.32 billion.

Executive Commentary

While commenting on the results, Bob Udell, president, and chief executive officer at CNSL said that since the third quarter, the company has increased consumer fibre connections 20% and grew consumer data average revenue per unit by 7%. The progress depicts the ongoing growth and opportunity as the company prepares to launch and new brand and introduces a superior fibre product and exceptional customer experience.

Future Outlook for CNSL

The last three months have seen CNSL stock declined by more than 20% despite no major negative catalyst. The analysts believe that the stock could experience a bearish spell in the next couple of months. However, in the case long term investments, the stock could provide benefit to the investors.

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