The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Knology missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved.
Gross margins dropped, operating margins grew, and net margins grew.
Knology reported revenue of $129.3 million. The seven analysts polled by S&P Capital IQ predicted revenue of $131.8 million on the same basis. GAAP reported sales were 4.6% higher than the prior-year quarter's $123.6 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 $0.31. The six earnings estimates compiled by S&P Capital IQ predicted $0.30 per share on the same basis. GAAP EPS were $0.30 for Q4 versus -$0.35 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.0%, 50 basis points worse than the prior-year quarter. Operating margin was 15.2%, 190 basis points better than the prior-year quarter. Net margin was 8.9%, 1,950 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $134.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $544.3 million. The average EPS estimate is $1.39.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 58 members out of 82 rating the stock outperform, and 24 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give Knology a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Knology is outperform, with an average price target of $17.86.
Over the decades, small-cap stocks like Knology have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Knology to My Watchlist.