The 10-second takeaway
For the quarter ended March 31 (Q1), USA Mobility missed estimates on revenues and missed estimates on earnings per share.
Compared with the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
USA Mobility tallied revenue of $56.7 million. The one analyst polled by S&P Capital IQ predicted a top line of $58.9 million on the same basis. GAAP reported sales were 1.0% lower than the prior-year quarter's $57.3 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 $0.38. The one earnings estimate compiled by S&P Capital IQ predicted $0.58 per share. GAAP EPS of $0.37 for Q1 were 80% lower than the prior-year quarter's $1.82 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 66.3%, 1,280 basis points worse than the prior-year quarter. Operating margin was 25.2%, 320 basis points worse than the prior-year quarter. Net margin was 14.9%, 5,600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $59.0 million. On the bottom line, the average EPS estimate is $0.57.
Next year's average estimate for revenue is $227.3 million. The average EPS estimate is $2.12.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 199 members out of 225 rating the stock outperform, and 26 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give USA Mobility a green thumbs-up, and 10 give it a red thumbs-down.
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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. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of USA Mobility. 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.