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The Gory Details on USA Mobility's Double Miss

USA Mobility (Nasdaq: USMO  ) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), USA Mobility missed slightly on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
USA Mobility chalked up revenue of $56.0 million. The one analyst polled by S&P Capital IQ predicted a top line of $57.1 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $65.2 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 $0.37. The one earnings estimate compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.38 for Q2 were 54% lower than the prior-year quarter's $0.82 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 57.3%, 1,620 basis points worse than the prior-year quarter. Operating margin was 24.7%, 40 basis points worse than the prior-year quarter. Net margin was 15.1%, 1,340 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $54.1 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $219.5 million. The average EPS estimate is $1.82.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 206 members out of 233 rating the stock outperform, and 27 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give USA Mobility a green thumbs-up, and 11 give it a red thumbs-down.

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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. 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.

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  • Report this Comment On July 31, 2012, at 4:30 PM, dsandman999 wrote:

    When I look at those graphs I see less of a miss on USMOs part and a very poor set of estimates for over a year. For EPS, they missed what was obviously an unusual quarter a year ago and then proceed to over estimate everything after that. They got the trend correct. Had they taken the actual instead of the estimate for 9/2011, they would have pretty much called it for the rest of the year. The misses on the revenue side were even worse.

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