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GTT Communications ( GTT ) is getting a lift as large companies use its Internet and ethernet networking connections for cloud-based services, say analysts. GTT, which has made two acquisitions since September, on Thursday reported Q4 revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) that topped views. December-quarter revenue rose 83% to $114.8 million vs. analysts’ consensus estimate of $114.4 million. “We believe organic revenue growth could accelerate as cloud adoption, increasing bandwidth usage and salesforce hiring continues,” said Michael Bowen, a Pacific Crest Securities analyst in a report. In the U.S., McLean, Va.-based GTT competes with Level 3 Communications ( LVLT ), CenturyLink ( CTL ), and Verizon Communications ( VZ ). GTT garners nearly 40% of revenue overseas, where it competes with KPN, Colt Technology, Deutsche Telekom ( DTEGY ) and Orange ( ORAN ) business services. “GTT’s goal is to provide connectivity for customers to any location in the world with any application in the cloud,” said Jonathan Charbonneau, a Cowen & Co. analyst, in a report. GTT’s stock was up 2% on the stock market today , after popping 12.5% on Thursday. Shares are about even in 2016, but they are down from a high of 25.7 in mid-September. GTT has an IBD Composite Rating of 60. It’s in IBD’s Internet Network-Solutions group, where Gigamon ( GIMO ) is tops with a CR of 93. IBD’s Internet Network-Solutions group is ranked No. 107 out of 197 industry groups. “GTT continues to be a beneficiary of the shift to cloud services, and the need for managed network services from multinational enterprises,” said Oppenheimer analyst Tim Horan in a report. GTT agreed to buy Telnes Broadband for $18 million in February. It purchased One Source Networks in September. Image provided by Shutterstock . Scalper1 News
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