Clearwire Increases Sales but Misses Estimates on Earnings

Clearwire (Nasdaq: CLWR  ) reported earnings on Feb. 15. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Clearwire beat slightly on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.

Margins improved across the board.

Revenue details
Clearwire reported revenue of $361.9 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $356.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $180.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.37. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.35 per share on the same basis. GAAP EPS were -$0.81 for Q4 versus -$2.01 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.5%, 5,280 basis points better than the prior-year quarter. Operating margin was -84.0%, 20,100 basis points better than the prior-year quarter. Net margin was -65.5%, 540 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $302.8 million. On the bottom line, the average EPS estimate is -$0.39.

Next year's average estimate for revenue is $1.20 billion. The average EPS estimate is -$1.66.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 567 members out of 683 rating the stock outperform, and 116 members rating it underperform. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Clearwire a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is outperform, with an average price target of $3.19.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 21, 2012, at 11:03 AM, MattC69 wrote:

    Once again, lift your game dudes - posting this "news" or "analysis" a week after the market had it is pretty pointless - seriously, why bother?

  • Report this Comment On February 21, 2012, at 1:10 PM, lucasmonger wrote:

    I hope CLWR can pull it together. It seems that big pipes will continue to need to get bigger, yet CLWR doesn't seem to be able to make much profit yet. The wet dream would be for it to bust a mile high like AKAM did from 2003 to now.... alas it's just a dream for now.

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12/31/1969 7:00 PM
CLWR.DL $0.00 Down +0.00 +0.00%
Clearwire Corp CAPS Rating: **