Could Level 3 Communications, Inc. (LVLT) Earnings Turn Profitable This Quarter?

But some investors still see promise from Level 3 Communications, Inc. (NYSE:LVLT) despite tough industry conditions. Keith Meister of Corvex Management, who worked with activist investor Carl Icahn, said in May that Level 3 should buy out TW Telecom Telecom Inc(NASDAQ:TWTC), citing growth trends in the industry and strong potential for benefits from strategic combinations. Both stocks rose on the comments, even though no progress on an actual buyout bid has been evident.

In the Level 3 Communications, Inc. (NYSE:LVLT) earnings report, be sure to compare the company’s growth to Akamai’s report, especially in the areas in which their business overlaps. If Level 3 fails where Akamai and its peers are succeeding, it could spell long-term trouble for Level 3’s hopes of becoming profitable.

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Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter: @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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