Level 3 Communications Inc. LVLT reported weak financial results in the first quarter of 2016 wherein both the top and the bottom line lagged the Zacks Consensus Estimate.On a GAAP basis, net income in the reported quarter was $124 million, or 34 cents per share compared with net income of $122 million, or 35 cents per share in the first quarter of 2015. Quarterly earnings per share of 34 cents were well below the Zacks Consensus Estimate of 45 cents.Level 3 Communications Inc. (LVLT) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyFirst quarter total revenue was $2,051 million, flat year over year but short of the Zacks Consensus Estimate of $2,078 million.Segment-wise, Core Network Services (CNS) revenues came in at $1,947 million, up 2.3% year over year. Wholesale Voice Services and Other revenues totaled $104 million, down 17.5% year over year.Geographically, North America generated $1,604 million in CNS revenues, up 4% year over year. Europe, the Middle East and Africa accounted for $191 million of revenues at CNS, down 5% while Latin America contributed $155 million, down 5%.Total operating expenses in the reported quarter were $1,689 million, down 2.8% year over year. Operating income came in at $362 million, up 14.6%. Adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was up 14.5% to $710 million. Adjusted EBITDA margin expanded to 34.6% from 30.5% in the prior-year quarter.In the first quarter of 2016, Level 3 Communications generated $410 million of unlevered cash from operations compared with $293 million in the year-ago quarter. Free cash flow in the reported quarter was $324 million compared with $188 million in the prior-year quarter.At the end of the first quarter of 2016, the company had $1,004 million of cash and cash equivalents and $11,651 million of outstanding debt compared with $854 million and $11,009 million, respectively, at the end of 2015. Meanwhile, the debt-to-capitalization ratio was 0.51 compared with 0.52 at the end of 2015.GuidanceFor 2016, Level 3 Communications expects adjusted EBITDA to grow 10% to 12% on a year-over-year basis. Free cash flow is estimated at $1 billion to $1.1 billion.Zacks Rank & Other Stocks to ConsiderLevel 3 Communications currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in this sector include ADTRAN Inc. ADTN, Finisar Corp. FNSR and DISH Network Corp. DISH. All three stocks currently carry a Zacks Rank #2 (Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ADTRAN INC (ADTN): Free Stock Analysis Report LEVEL 3 COMM (LVLT): Free Stock Analysis Report DISH NETWORK CP (DISH): Free Stock Analysis Report FINISAR CORP (FNSR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research