The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Clearwire met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP loss per share dropped.
Margins increased across the board.
Clearwire tallied revenue of $311.2 million. The 12 analysts polled by S&P Capital IQ wanted to see sales of $312.8 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $361.9 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 -$0.13. The nine earnings estimates compiled by S&P Capital IQ anticipated -$0.27 per share. GAAP EPS were -$0.30 for Q4 compared to -$2.23 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 33.1%, 2,940 basis points better than the prior-year quarter. Operating margin was -100.8%, 480 basis points better than the prior-year quarter. Net margin was -60.1%, 540 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $313.5 million. On the bottom line, the average EPS estimate is -$0.26.
Next year's average estimate for revenue is $1.35 billion. The average EPS estimate is -$0.94.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 572 members out of 685 rating the stock outperform, and 113 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Clearwire a green thumbs-up, and 34 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is hold, with an average price target of $2.83.
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