Knology shares jump after 2nd-quarter results come in better than expected

Knology shares jump on strong 2Q results

NEW YORK — Shares of Knology Inc. got a boost Wednesday after the telecommunications company posted better-than-expected results for the second quarter and said it is buying Sunflower Broadband for $165 million in cash.

Sunflower provides video, voice and data services to residents and businesses in Douglas County and Lawrence, Kansas. It is expected to generate about $51 million in revenue in 2010, Knology said.

Knology earned $7.6 million, or 20 cents per share in the second quarter, up from a profit of $1.3 million, or 4 cents per share, in the same period a year earlier. Revenue rose 5 percent to $113 million.

Analysts, on average, were expecting a profit of 13 cents per share on revenue of $111.9 million, according to a poll by Thomson Reuters.

Knology expects the Sunflower acquisition to close in the fourth quarter.

Shares of West Point, Ga.-based Knology rose $1.18, or 10 percent, to $12.64 in afternoon trading. The stock has traded in the 52-week range of $7.05 and $14.14.