The 10-second takeaway
For the quarter ended June 30 (Q2), NII Holdings missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
NII Holdings recorded revenue of $1.50 billion. The eight analysts polled by S&P Capital IQ expected revenue of $1.56 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $1.75 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.60. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were -$0.60 for Q2 compared to $0.66 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.2%, 610 basis points worse than the prior-year quarter. Operating margin was 2.6%, 1,460 basis points worse than the prior-year quarter. Net margin was -6.9%, 1,340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $6.45 billion. The average EPS estimate is $0.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 382 members out of 420 rating the stock outperform, and 38 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give NII Holdings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NII Holdings is hold, with an average price target of $20.35.
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