The 10-second takeaway
For the quarter ended Nov. 30 (Q1), Shaw Communications missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and earnings per share grew significantly.
Margins grew across the board.
Shaw Communications chalked up revenue of $1.3 billion. The 12 analysts polled by S&P Capital IQ expected to see sales of $1.3 billion. Sales were 20% higher than the prior-year quarter's $1.1 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.47. The three earnings estimates compiled by S&P Capital IQ averaged $0.47 per share on the same basis. GAAP EPS of $0.42 for Q1 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 40.1%, 110 basis points better than the prior-year quarter. Operating margin was 29.1%, 200 basis points better than the prior-year quarter. Net margin was 15%, 1,350 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.2 billion. On the bottom line, the average EPS estimate is $0.37.
Next year's average estimate for revenue is $5 billion. The average EPS estimate is $1.63.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 114 members out of 121 rating the stock outperform, and seven members rating it underperform. Among 37 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Shaw Communications a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shaw Communications is hold, with an average price target of $21.39.
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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.