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What to Expect from USA Mobility

By Seth Jayson - Updated Apr 7, 2017 at 12:15PM

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Checking expectations

USA Mobility (Nasdaq: USMO) is expected to report Q3 earnings around Oct. 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict USA Mobility's revenues will drop -11.7% and EPS will compress -25.5%.

The average estimate for revenue is $54.3 million. On the bottom line, the average EPS estimate is $0.38.

Revenue details
Last quarter, USA Mobility reported revenue of $56.0 million. GAAP reported sales were 14% lower than the prior-year quarter's $65.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.37. GAAP EPS of $0.37 for Q2 were 55% lower than the prior-year quarter's $0.82 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 73.8%, 40 basis points better than the prior-year quarter. Operating margin was 23.5%, 60 basis points worse than the prior-year quarter. Net margin was 15.1%, 1,340 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $220.6 million. The average EPS estimate is $1.50.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 218 members out of 243 rating the stock outperform, and 25 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 40 give USA Mobility a green thumbs-up, and 10 give it a red thumbs-down.

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