Liberty Latin America (NASDAQ:LILA) Shares Gap Down on Disappointing Earnings

Liberty Latin America Ltd. (NASDAQ:LILA)’s stock price gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $7.73, but opened at $7.30. Liberty Latin America shares last traded at $8.4850, with a volume of 242,718 shares trading hands.

The company reported ($0.27) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.04) by ($0.23). Liberty Latin America had a negative return on equity of 54.11% and a negative net margin of 16.57%.The business had revenue of $1.16 billion for the quarter, compared to analysts’ expectations of $1.14 billion.

Wall Street Analyst Weigh In

A number of analysts recently commented on LILA shares. Benchmark lifted their price objective on Liberty Latin America from $12.00 to $13.00 and gave the stock a “buy” rating in a research report on Monday, November 10th. Weiss Ratings restated a “sell (d-)” rating on shares of Liberty Latin America in a report on Thursday, January 22nd. One analyst has rated the stock with a Buy rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $9.75.

Institutional Investors Weigh In On Liberty Latin America

Several hedge funds have recently modified their holdings of LILA. Russell Investments Group Ltd. increased its position in Liberty Latin America by 58.8% during the third quarter. Russell Investments Group Ltd. now owns 5,593 shares of the company’s stock worth $46,000 after purchasing an additional 2,070 shares during the last quarter. Mackenzie Financial Corp grew its stake in shares of Liberty Latin America by 1.6% during the 3rd quarter. Mackenzie Financial Corp now owns 146,887 shares of the company’s stock valued at $1,218,000 after buying an additional 2,314 shares during the period. CWM LLC increased its holdings in shares of Liberty Latin America by 80.7% during the 3rd quarter. CWM LLC now owns 6,487 shares of the company’s stock worth $54,000 after buying an additional 2,897 shares during the last quarter. Intech Investment Management LLC increased its holdings in shares of Liberty Latin America by 29.1% during the 4th quarter. Intech Investment Management LLC now owns 15,652 shares of the company’s stock worth $116,000 after buying an additional 3,524 shares during the last quarter. Finally, PNC Financial Services Group Inc. raised its position in shares of Liberty Latin America by 96.2% in the 3rd quarter. PNC Financial Services Group Inc. now owns 8,338 shares of the company’s stock worth $69,000 after buying an additional 4,089 shares during the period. 18.48% of the stock is owned by institutional investors and hedge funds.

Liberty Latin America Stock Up 10.7%

The stock has a fifty day moving average of $7.65 and a two-hundred day moving average of $7.90. The company has a quick ratio of 1.14, a current ratio of 1.14 and a debt-to-equity ratio of 6.78. The stock has a market cap of $1.71 billion, a price-to-earnings ratio of -2.32 and a beta of 1.01.

Liberty Latin America Company Profile

Liberty Latin America is a telecommunications company that provides video, broadband internet, telephony and mobile services across Latin America and the Caribbean. The company’s operations span consumer and business markets, offering cable television packages, high-speed broadband connections, fixed-line voice services and wireless data plans. Through its brands, including Flow in several Caribbean territories and VTR in Chile, Liberty Latin America focuses on delivering converged digital solutions designed to meet both residential and enterprise needs.

Formed in 2018 as a spin-off from Liberty Global, Liberty Latin America built its initial footprint by integrating legacy assets acquired from Cable & Wireless Communications and Columbus Communications.