Level 3 Dives Following Earnings Release (LVLT)

Shares of Level 3 Communications LVLT have taken a turn for the worse, after the firm's fourth-quarter earnings report landed with a thud. The company confessed to a net loss of $52 million, or 3 cents per share, narrowed from its year-ago deficit of $182 million, or 11 cents per share. Revenue for the quarter declined to $921 million from $924 million. The results actually surpassed Wall Street's consensus forecast, which called for a net loss of 10 cents per share on revenue of $920.1 million. However, traders seem none too pleased with Level 3's earnings performance, as the stock plummeted roughly 7% Wednesday morning. In particular, it seems the market may be taking issue with Level 3's warning that it expects free cash flow to be negative for fiscal 2011. Continue reading the article.