Consolidated Communications reports Q3 EPS (31c), consensus (37c)

Reports Q3 revenue $283.65M , consensus $274.23M. Reports operating expenses increased $15.2 M versus the prior year largely due to increased severance costs in relation to the previously announced business simplification and costs savings initiatives, in addition to higher costs related to professional fees for customer service and process improvement initiatives. Partly offsetting the higher operating expenses was the impact of the divestiture of the Kansas City operations on Nov. 30, 2022, lower video programming costs and a decrease in required contributions to the federal and state Universal Service Funds. Net interest expense was $39.6 million, an increase of $7.5M versus the prior year, primarily as a result of higher interest on the term loan. The Company has 77% of its total debt at a fixed rate through September 2026. As of Sept. 30 the weighted average cost of debt was 7.03%.