Towerstream (TWER) Stock: Gaining on Q3 Expectations

Towerstream Corporation (NASDAQ: TWER)

Towerstream is having an incredible day in the market today, and for good reason. The company released a press release offering a key business update. The update included expectations with regard to the On-Net footprint growth in Q3. Today, we’ll talk about what we saw from the release, what we saw from the stock as a result, and what we can expect to see from TWER ahead. So, let’s get right to it…

TWER Gains On Press Release

As mentioned above, Towerstream is having an incredibly strong day in the market today after releasing a press release. In the release, we learned more about what we can expect to see with regard to Q3 growth. Here’s what the company had to offer…

First and foremost, TWER said that it is on track to add 70 buildings to its On-Net footprint in Q3. That shows substantial growth. In fact, that’s a 70% increase over additions seen in the second quarter. If this figure does come to fruition, by the end of Q3, there will be 335 On-Net buildings by the end of the quarter.

The new buildings are incredible news because it increases the company’s customer base. Based on the projected growth, the total number of businesses, all of which are targeted potential clients, will be up 30% to over 10,000. At the end of Q2, that figure came in at around 7,700.

In a statement, Arthur Giftakis, COO at TWER had the following to offer…

Fixed-wireless technology inherently provides a competitive advantage… The speed we can add buildings at our low cost gives us an unfair advantage over fiber and cable.”

How The Stock Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly traded company, we can expect to see gains in the value of the stock associated with the news as a result. Adversely, negative news will generally lead to declines. Nonetheless, the news that was released with regard to Towerstream today was overwhelmingly positive. At the moment, the company is on track to add a decent number of buildings, ultimately expanding its target audience in a big way. As a result, we’re seeing gains in the value of the stock. Currently (3:10), the stock is trading at $1.41 per share after a gain of $0.11 per share or 8.69% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from TWER. First and foremost, the company is on track for the addition of a strong amount of buildings, ultimately expanding the target audience for the service. Also, it’s important to keep in mind that it takes time to win customers over. At the moment, the company’s penetration rate in On-Net buildings is only 6%. While this is generating revenue, the company can do much better as it has time to sell its services. All in all, things seem to be going incredibly well for TWER and I’m expecting to see gains ahead.

What Do You Think?

Where do you think TWER is headed moving forward and why? Join the discussion in the comments below!