The 10-second takeaway
For the quarter ended Feb. 29 (Q2), Shaw Communications met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share stayed the same.
Gross margin dropped, operating margin dropped, and net margin grew.
Shaw Communications recorded revenue of $1.25 billion. The 11 analysts polled by S&P Capital IQ hoped for sales of $1.25 billion on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $1.23 billion.
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 $0.39. The three earnings estimates compiled by S&P Capital IQ anticipated $0.38 per share on the same basis. GAAP EPS of $0.38 were the same as 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 35.4%, 260 basis points worse than the prior-year quarter. Operating margin was 23.2%, 300 basis points worse than the prior-year quarter. Net margin was 13.7%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.32 billion. On the bottom line, the average EPS estimate is $0.42.
Next year's average estimate for revenue is $5.08 billion. The average EPS estimate is $1.50.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 120 members out of 128 rating the stock outperform, and eight members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Shaw 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 Shaw Communications is hold, with an average price target of $21.00.
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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.