The 10-second takeaway
For the quarter ended March 31 (Q1), Telecom Argentina met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't move.
Gross margins increased, operating margins contracted, and net margins contracted.
Telecom Argentina reported revenue of $1.17 billion. The two analysts polled by S&P Capital IQ predicted net sales of $1.18 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.02 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 $0.81. The five earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.16 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.0%, 350 basis points better than the prior-year quarter. Operating margin was 20.1%, 340 basis points worse than the prior-year quarter. Net margin was 13.6%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $2.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 212 members out of 230 rating the stock outperform, and 18 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Telecom Argentina a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Telecom Argentina is outperform, with an average price target of $24.78.
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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.