Yahoo Finance Zayo to Offer Dark Fiber Solutions in Major European Markets
Zayo Group Holdings, Inc. ZAYO recently inked an agreement with an unnamed international carrier for an undisclosed amount to offer dark fiber solutions across leading European markets. The deal will help the carrier expand its reach in the continent.
Zayo will offer nearly 3,500 route-mile dark fiber network connecting four major European markets, namely, Marseille, Paris, Frankfurt and London. The carrier will connect to Zayo’s network via subsea cables in Marseille — the second largest city in France. Marseille serves as the strategic gateway and intercontinental aggregation point and will enable the carrier to connect to other premier European cities to gain capacity and latency advantages.
Zayo’s extensive network footprint, diversified product portfolio and the ability to penetrate in different markets are commendable. The company continues to extend global reach by expanding its fiber footprint and forging partnerships with local providers. It has been experiencing broad-based demand across all customer verticals, which is likely to continue.
Meanwhile, improving trends such as record bookings and stable churn are expected to drive organic growth. Zayo is bullish about additional E-Rate opportunities in the upcoming quarters and is well poised to benefit from the growing need for cloud adoption and high-performance bandwidth across the globe.
Furthermore, Zayo is quite enthusiastic about the prospects of its largest business segment, Fiber Solutions. Moreover, it has been realigning its businesses to drive efficiency and improve operating metrics. Notably, the company is moving its Ethernet Transport business from Enterprise to the Transport segment. The realignment is expected to arrange all point-to-point private network solutions within one segment — Transport.
With diligent execution of operational plans, Zayo has gained 18.3% on average in the past two years compared with a rise of 11.6% for the industry.
Zayo currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are United States Cellular Corp. USM, AT&T Inc. T and Windstream Holdings, Inc. WIN. While United States Cellular sports a Zacks Rank #1 (Strong Buy), AT&T and Windstream carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United States Cellular has long-term earnings growth expectation of 1%. It surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 303.6%.
AT&T has long-term earnings growth expectation of 3.6%. It trumped earnings estimates twice in the trailing four quarters, the average positive surprise being 5.9%.
Windstream surpassed earnings estimates twice in the last four quarters, the average positive surprise being 23.5%.
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Zayo Group Holdings, Inc. (ZAYO) : Free Stock Analysis Report
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