United States Cellular
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), United States Cellular met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped significantly.
Gross margins dropped, operating margins expanded, net margins dropped.
United States Cellular recorded revenue of $1.10 billion. The five analysts polled by S&P Capital IQ hoped for sales of $1.11 billion on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $1.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.04. The six earnings estimates compiled by S&P Capital IQ predicted $0.30 per share on the same basis. GAAP EPS of $0.03 for Q4 were 63% lower than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.4%, 60 basis points worse than the prior-year quarter. Operating margin was 1.8%, 210 basis points better than the prior-year quarter. Net margin was 0.3%, 30 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is $1.94.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 32 members out of 54 rating the stock outperform, and 22 members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give United States Cellular a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United States Cellular is hold, with an average price target of $35.75.
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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 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.