The 10-second takeaway
For the quarter ended June 30 (Q2), NII Holdings missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share shrank to a loss.
Margins dropped across the board.
NII Holdings recorded revenue of $1.50 billion. The eight analysts polled by S&P Capital IQ expected revenue of $1.56 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $1.75 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 -$0.60. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were -$0.60 for Q2 compared to $0.66 per share for 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 56.2%, 610 basis points worse than the prior-year quarter. Operating margin was 2.6%, 1,460 basis points worse than the prior-year quarter. Net margin was -6.9%, 1,340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.56 billion. On the bottom line, the average EPS estimate is -$0.13.
Next year's average estimate for revenue is $6.45 billion. The average EPS estimate is $0.04.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 382 members out of 420 rating the stock outperform, and 38 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give NII Holdings a green thumbs-up, and nine give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NII Holdings is hold, with an average price target of $20.35.
- Add NII Holdings to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.