The 10-second takeaway
For the quarter ended March 31 (Q1), Cincinnati Bell met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share contracted significantly.
Margins dropped across the board.
Cincinnati Bell recorded revenue of $362.8 million. The eight analysts polled by S&P Capital IQ expected revenue of $367.0 million on the same basis. GAAP reported sales were 0.6% higher than the prior-year quarter's $360.8 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 $0.06. The eight earnings estimates compiled by S&P Capital IQ forecast $0.06 per share. GAAP EPS of $0.05 for Q1 were 38% lower than the prior-year quarter's $0.08 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 54.3%, 160 basis points worse than the prior-year quarter. Operating margin was 22.6%, 200 basis points worse than the prior-year quarter. Net margin was 3.5%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $370.8 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.48 billion. The average EPS estimate is $0.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 106 members rating the stock outperform, and 15 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Cincinnati Bell a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cincinnati Bell is outperform, with an average price target of $4.34.
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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.