Clearwire (Nasdaq: CLWR) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Clearwire met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share dropped.
Gross margins increased, operating margins dropped, net margins dropped.
Revenue details
Clearwire reported revenue of $313.9 million. The 14 analysts polled by S&P Capital IQ looked for sales of $312.4 million on the same basis. GAAP reported sales were 5.5% lower than the prior-year quarter's $332.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.34. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.29 per share. GAAP EPS were -$0.34 for Q3 against -$0.54 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 32.6%, 440 basis points better than the prior-year quarter. Operating margin was -105.2%, 950 basis points worse than the prior-year quarter. Net margin was -68.1%, 4,260 basis points worse than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $310.9 million. On the bottom line, the average EPS estimate is -$0.30.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is -$1.40.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 588 members out of 709 rating the stock outperform, and 121 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Clearwire a green thumbs-up, and 39 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is outperform, with an average price target of $2.15.
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