The 10-second takeaway
For the quarter ended March 31 (Q1), Atlantic Tele-Network met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share expanded significantly.
Margins improved across the board.
Atlantic Tele-Network booked revenue of $182.9 million. The four analysts polled by S&P Capital IQ expected a top line of $183.7 million on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $188.2 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 $0.60. The four earnings estimates compiled by S&P Capital IQ predicted $0.49 per share. GAAP EPS of $0.60 for Q1 were 107% higher than the prior-year quarter's $0.29 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 66.7%, 560 basis points better than the prior-year quarter. Operating margin was 9.9%, 420 basis points better than the prior-year quarter. Net margin was 5.1%, 270 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $186.3 million. On the bottom line, the average EPS estimate is $0.58.
Next year's average estimate for revenue is $746.0 million. The average EPS estimate is $2.33.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 213 members out of 221 rating the stock outperform, and eight members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Atlantic Tele-Network a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Atlantic Tele-Network is outperform, with an average price target of $50.00.
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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.