The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Shenandoah Telecommunications missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Gross margin contracted, operating margin improved, and net margin grew.
Shenandoah Telecommunications reported revenue of $66.5 million. The one analyst polled by S&P Capital IQ predicted revenue of $68.6 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $57.9 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 $0.15. The two earnings estimates compiled by S&P Capital IQ anticipated $0.16 per share on the same basis. GAAP EPS of $0.16 for Q4 were 45% higher than the prior-year quarter's $0.11 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 55.1%, 340 basis points worse than the prior-year quarter. Operating margin was 12.1%, 480 basis points better than the prior-year quarter. Net margin was 6.0%, 130 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $70.7 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $282.2 million. The average EPS estimate is $0.90.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 50 members out of 53 rating the stock outperform, and three members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Shenandoah Telecommunications a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Shenandoah Telecommunications is outperform, with an average price target of $17.50.
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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.