The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Telecom Argentina beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.
Margins dropped across the board.
Telecom Argentina booked revenue of $1.19 billion. The six analysts polled by S&P Capital IQ expected to see sales of $1.17 billion on the same basis. GAAP reported sales were 13% 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 $0.74. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.77 per share on the same basis. GAAP EPS of $0.14 for Q4 were 7.7% higher than the prior-year quarter's $0.13 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 50.6%, 1,350 basis points worse than the prior-year quarter. Operating margin was 19.0%, 190 basis points worse than the prior-year quarter. Net margin was 11.8%, 40 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $4.74 billion. The average EPS estimate is $3.14.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 198 members out of 208 rating the stock outperform, and 11 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Telecom Argentina a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Telecom Argentina is outperform, with an average price target of $25.93.
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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.