Benzinga | Apr 29, 2021 01:47PM EDT

CNSL Stock Is Trading Higher On Upbeat Q1 Results

* Consolidated Communications Holdings Inc (NASDAQ: CNSL) reported a first-quarter FY21 revenue decline of 0.3% year on year to $324.8 million, beating the analyst estimate of $316.99 million.

* Commercial and carrier revenue declined 1.8% to $144.3 million from the decline in Voice services and other revenue partially offset by Data and transport services revenue growth.

* Consumer revenue declined 2.7% to $123 million from Video and Voice services revenue decline partially offset by Broadband revenue growth.

* Subsidies revenue declined 0.3% to $17.4 million.

* Adjusted EPS was $0.21, above the consensus estimate of $0.06.

* Adjusted EBITDA declined 3.8% to $126.6 million due to expenses regarding the startup of the fiber expansion plans.

* The company generated $98.5 million in operating cash flow. It held $325.1 million in cash and equivalents.

* Capital expenditures rose 79.2% to $76 million due to its fiber build expansion plan and investment in digital transformation technology.

* The Q1 results demonstrated the company's delivery of fiber growth plans. It upgraded 46,000 passings to Gig+ FTTP and sustained an eight-quarter track record of broadband revenue growth, CEO Bob Udell said.

* Guidance: CNSL affirmed the FY21 capital expenditure estimate between $400 million and $420 million and adjusted EBITDA estimates $500 million and $510 million. The company aimed to bring gigabit broadband services to at least 70% of its footprint by 2025.

* Price action: CNSL shares traded higher by 4.81% at $6.97 on the last check Thursday.