Fool Checkup: Clearwire Earnings (CLWR)

Fool Checkup: Clearwire Earnings

Clearwire (Nasdaq: CLWR ) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Clearwire met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP loss per share shrank.

Margins increased across the board.

Revenue details
Clearwire logged revenue of $316.9 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $320.6 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $322.6 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 -$0.26. The 11 earnings estimates compiled by S&P Capital IQ predicted -$0.31 per share. GAAP EPS were -$0.32 for Q2 compared to -$1.01 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 29.2%, 220 basis points better than the prior-year quarter. Operating margin was -98.1%, 650 basis points better than the prior-year quarter. Net margin was -46.0%, 630 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $319.6 million. On the bottom line, the average EPS estimate is -$0.32.

Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is -$1.41.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 572 members out of 680 rating the stock outperform, and 108 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Clearwire a green thumbs-up, and 34 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is hold, with an average price target of $2.70.

New mobile devices and services are changing the game and potential profitability in the wireless industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Clearwire fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.

Add Clearwire to My Watchlist.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

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. The Motley Fool has no positions in the stocks mentioned above. 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.

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 icon found on every comment.