The 10-second takeaway
For the quarter ended June 30 (Q2), Cincinnati Bell met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Cincinnati Bell notched revenue of $368.2 million. The nine analysts polled by S&P Capital IQ predicted a top line of $370.0 million on the same basis. GAAP reported sales were 0.2% higher than the prior-year quarter's $367.5 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 $0.05. The seven earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.01 for Q2 were 80% lower than the prior-year quarter's $0.05 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 53.4%, 60 basis points worse than the prior-year quarter. Operating margin was 21.6%, 100 basis points worse than the prior-year quarter. Net margin was 1.2%, 250 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $373.1 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $1.48 billion. The average EPS estimate is $0.25.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 108 members out of 122 rating the stock outperform, and 14 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Cincinnati Bell a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cincinnati Bell is outperform, with an average price target of $4.58.
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