The 10-second takeaway
For the quarter ended March 31 (Q1), Partner Communications missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Partner Communications reported revenue of $423.7 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $466.0 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $509.5 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 $0.25. The one earnings estimate compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.25 for Q1 were 47% lower than the prior-year quarter's $0.47 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 28.2%, 470 basis points worse than the prior-year quarter. Operating margin was 15.8%, 680 basis points worse than the prior-year quarter. Net margin was 9.3%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $484.9 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.71 billion. The average EPS estimate is $1.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 524 members out of 540 rating the stock outperform, and 17 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Partner Communications 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 Partner Communications is hold, with an average price target of $12.44.
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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.