The 10-second takeaway
For the quarter ended Sep. 30 (Q3), General Communication missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped significantly.
Margins dropped across the board.
General Communication recorded revenue of $178.5 million. The three analysts polled by S&P Capital IQ foresaw a top line of $181.7 million on the same basis. GAAP reported sales were 0.4% higher than the prior-year quarter's $177.7 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 $0.09. The three earnings estimates compiled by S&P Capital IQ averaged $0.10 per share. GAAP EPS of $0.09 for Q3 were 40% lower than the prior-year quarter's $0.15 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 64.8%, 110 basis points worse than the prior-year quarter. Operating margin was 14.2%, 370 basis points worse than the prior-year quarter. Net margin was 2.1%, 200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $178.8 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $708.5 million. The average EPS estimate is $0.29.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 30 members out of 52 rating the stock outperform, and 22 members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give General Communication a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Communication is buy, with an average price target of $12.67.
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