The 10-second takeaway
For the quarter ended June 30 (Q2), Telecom Argentina missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped.
Gross margins increased, operating margins dropped, and net margins dropped.
Telecom Argentina booked revenue of $1.17 billion. The three analysts polled by S&P Capital IQ looked for revenue of $1.22 billion on the same basis. GAAP reported sales were 7.3% higher than the prior-year quarter's $1.09 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 $0.63. The four earnings estimates compiled by S&P Capital IQ predicted $0.68 per share. GAAP EPS of $0.13 for Q2 were 13% lower than the prior-year quarter's $0.15 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 56.9%, 80 basis points better than the prior-year quarter. Operating margin was 16.1%, 580 basis points worse than the prior-year quarter. Net margin was 11.0%, 210 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.25 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $4.48 billion. The average EPS estimate is $2.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 217 members rating the stock outperform and 15 members rating it underperform. Among 55 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Telecom Argentina a green thumbs-up, and four 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 $21.78.
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