The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SureWest Communications beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share contracted significantly.
Margins dropped across the board.
SureWest Communications recorded revenue of $63.5 million. The four analysts polled by S&P Capital IQ anticipated revenue of $62.8 million on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $61.6 million.
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 $0.11. The two earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS of $0.11 for Q4 were 21% lower than the prior-year quarter's $0.14 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 54.5%, 130 basis points worse than the prior-year quarter. Operating margin was 7%, 60 basis points worse than the prior-year quarter. Net margin was 2.3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.1 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $256.8 million. The average EPS estimate is $0.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 44 members rating the stock outperform and 14 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give SureWest Communications 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 SureWest Communications is outperform, with an average price target of $16.40.
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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.