The 10-second takeaway
For the quarter ended March 31 (Q1), Clearwire beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP loss per share shrank.
Margins expanded across the board.
Clearwire logged revenue of $322.6 million. The 11 analysts polled by S&P Capital IQ anticipated a top line of $307.8 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $236.8 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 -$0.03. The 10 earnings estimates compiled by S&P Capital IQ averaged -$0.40 per share. GAAP EPS were -$0.44 for Q1 compared to -$0.85 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 18.2%, 1,710 basis points better than the prior-year quarter. Operating margin was -105.8%, 9,250 basis points better than the prior-year quarter. Net margin was -56.4%, 3,940 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $307.8 million. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is -$1.71.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 561 members out of 678 rating the stock outperform, and 117 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Clearwire a green thumbs-up, and 34 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is hold, with an average price target of $3.10.
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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.