Loral Space & Communications
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Loral Space & Communications beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped significantly.
Gross margins shrank, operating margins increased, net margins contracted.
Loral Space & Communications reported revenue of $306.2 million. The one analyst polled by S&P Capital IQ predicted a top line of $272.5 million on the same basis. GAAP reported sales were 6.3% lower than the prior-year quarter's $326.7 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 $3.28. The one earnings estimate compiled by S&P Capital IQ averaged $1.12 per share. GAAP EPS of $3.28 for Q4 were 75% lower than the prior-year quarter's $12.87 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 12.1%, 330 basis points worse than the prior-year quarter. Operating margin was 9.2%, 70 basis points better than the prior-year quarter. Net margin was 34.9%, 8,900 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $295.5 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $1.24 billion. The average EPS estimate is $3.90.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 48 members out of 56 rating the stock outperform, and eight members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Loral Space & 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 Loral Space & Communications is outperform, with an average price target of $72.00.
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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.