The 10-second takeaway
For the quarter ended Sep. 30 (Q3), NII Holdings met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP loss per share grew.
Margins shrank across the board.
NII Holdings logged revenue of $1.49 billion. The nine analysts polled by S&P Capital IQ foresaw a top line of $1.49 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 -$0.48. The nine earnings estimates compiled by S&P Capital IQ forecast -$0.27 per share. GAAP EPS were -$0.48 for Q3 compared to -$0.02 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 57.7%, 300 basis points worse than the prior-year quarter. Operating margin was 2.2%, 990 basis points worse than the prior-year quarter. Net margin was -5.5%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.51 billion. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $6.13 billion. The average EPS estimate is -$0.93.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 375 members out of 410 rating the stock outperform, and 35 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give NII Holdings a green thumbs-up, and 10 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 $10.70.
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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.