Level 3 Communications said Wednesday that it's expecting 2012 adjusted earnings for the full year to increase between 20 percent and 25 percent.
The fiber optic network provider, a spinoff of Peter Kiewit Sons' Inc., cited cost savings from its merger with former competitor Global Crossing and increased demand for online video bandwidth from companies like Netflix, a Level 3 client.
The heightened expectations sent Level 3's stock up as high as $23.25 per share before it closed at $21.31, up 8.8 percent for the day.
The Broomfield, Colo.-based company's losses for the quarter were $163 million, or 80 cents per share, compared with losses of $52 million, or 47 cents, a year ago. Not including one-time charges, the most recent quarter's net loss would have been 62 cents per share.
For the full year, the company lost $756 million, or $5.51 per share, compared with $622 million, or $5.62 per share, last year.
Full-year revenue for Level 3 alone was about $3.7 billion, versus $3.6 billion a year ago. And fourth-quarter revenue increased to $934 million from $927 million. Operations from Global Crossing brought total revenue for the quarter to $1.58 billion.
Chief Executive Officer James Crowe told analysts and investors on a conference call that Level 3 stands to benefit from "demand created by more and more video sold to individuals at their home — entertainment, gaming, etc. — but also the clearly growing demand to embed video in every enterprise communication."
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