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.
Over the decades, small-cap stocks like NII Holdings have provided 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: Two Small Caps the Government Won't Let Go Broke." Get instant access to this free report.
- Add NII Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the 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 don't 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.