nTelos Holdings Beats on Both Top and Bottom Lines

nTelos Holdings (Nasdaq: NTLS  ) reported earnings on April 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), nTelos Holdings beat expectations on revenues and earnings per share.

Compared with the prior-year quarter, revenue dropped significantly and GAAP earnings per share dropped significantly.

Gross margins dropped, operating margins shrank, net margins increased.

Revenue details
nTelos Holdings booked revenue of $110.5 million. The five analysts polled by S&P Capital IQ predicted revenue of $108.3 million on the same basis. GAAP reported sales were 29% lower than the prior-year quarter's $155.5 million.

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

EPS details
EPS came in at $0.38. The four earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. GAAP EPS of $0.37 for Q1 were 29% lower than the prior-year quarter's $0.52 per share.

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 64.5%, 150 basis points worse than the prior-year quarter. Operating margin was 17.1%, 320 basis points worse than the prior-year quarter. Net margin was 7.1%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $110.3 million. On the bottom line, the average EPS estimate is $0.28.

Next year's average estimate for revenue is $445.8 million. The average EPS estimate is $1.23.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 119 members out of 124 rating the stock outperform, and five members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give nTelos Holdings a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on nTelos Holdings is outperform, with an average price target of $29.75.

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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. He is the 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 don't 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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