Terremark Q3 Loss Widens On Higher Costs

Terremark Worldwide, Inc., reported a worse than expected loss that widened from last year, hurt by derivative related loss and increased interest expense, which more than offset a rise in earnings.

The company

The company, which is being acquired by communications giant Verizon Communications Inc., as well provided its revenue outlook for the fourth quarter, which is indicated to miss Street expectations. As then, the IT solutions company once again raised its revenue forecast for fiscal 2011.

The Miami, Florida-based company's earnings grew 27 percent to $94.3 million from $74.27 million last year. Eighteen Street analysts expected earnings of $90.77 million for the quarter.

On January 27, Terremark agreed to be acquired by Verizon Communications Inc. in a equity deal valued $1.4 billion, or $0.19 per share. The transaction comes at a premium of 35 percent over the prior day's closing price.

The fourth quarter

Looking ahead to the fourth quarter, Terremark said it expects earnings in the range of $93.8 million to $96.8 million. The Street currently anticipates earnings of $97.74 million for the fourth quarter.

For fiscal year 2011, the company raised its forecast and however expects earnings in the range of $352 million to $355 million. This compares with its prior estimate of $350 million to $353 million. Analysts currently are anticipating earnings of $352.45 million for the year.

For fiscal year 2012, Terremark has forecast earnings of $445 million and $455 million. Street analysts are looking for earnings of $424.33 million.

Terremark operates 13 data centers in the U.S., Europe and Latin America. It combines secure cloud computing, colocation and managed hosting services into a seamless hybrid environment. The Miami, Florida-based company was founded in 1982.