United States Cellular
The 10-second takeaway
For the quarter ended June 30 (Q2), United States Cellular beat slightly on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
United States Cellular logged revenue of $1.10 billion. The four analysts polled by S&P Capital IQ wanted to see a top line of $1.09 billion on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $1.08 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 $0.62. The six earnings estimates compiled by S&P Capital IQ anticipated $0.69 per share. GAAP EPS of $0.62 for Q2 were 30% lower than the prior-year quarter's $0.88 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 60.6%, 240 basis points worse than the prior-year quarter. Operating margin was 7.9%, 200 basis points worse than the prior-year quarter. Net margin was 4.8%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.11 billion. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $4.41 billion. The average EPS estimate is $2.18.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 35 members out of 59 rating the stock outperform, and 24 members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give United States Cellular 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 United States Cellular is hold, with an average price target of $38.50.
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