The 10-second takeaway
For the quarter ended March 31 (Q1), NII Holdings missed estimates on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins shrank across the board.
NII Holdings logged revenue of $1.63 billion. The seven analysts polled by S&P Capital IQ wanted to see revenue of $1.70 billion on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $1.62 billion.
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 $0.06. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.23 per share. GAAP EPS of $0.06 for Q1 were 89% lower than the prior-year quarter's $0.56 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 59.2%, 40 basis points worse than the prior-year quarter. Operating margin was 11.5%, 540 basis points worse than the prior-year quarter. Net margin was 0.7%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.72 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $6.97 billion. The average EPS estimate is $1.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 376 members out of 405 rating the stock outperform, and 29 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 108 give NII Holdings a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NII Holdings is outperform, with an average price target of $28.22.
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