Consolidated Communications Holdings
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Consolidated Communications Holdings beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased.
Gross margins shrank, operating margins expanded, and net margins improved.
Consolidated Communications Holdings notched revenue of $93.7 million. The four analysts polled by S&P Capital IQ expected to see net sales of $92.0 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $93.8 million.
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 $0.28. The six earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.26 for Q4 were 13% higher than the prior-year quarter's $0.23 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 62.2%, 120 basis points worse than the prior-year quarter. Operating margin was 16.8%, 80 basis points better than the prior-year quarter. Net margin was 8.4%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $92.1 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $366.8 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 71 members out of 82 rating the stock outperform, and 11 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Consolidated Communications Holdings a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Consolidated Communications Holdings is hold, with an average price target of $18.42.
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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.