The 10-second takeaway
For the quarter ended Dec. 31 (Q4), NII Holdings met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP loss per share expanded. GAAP earnings per share shrank to a loss.
Margins dropped across the board.
NII Holdings reported revenue of $1.47 billion. The nine analysts polled by S&P Capital IQ expected to see a top line of $1.47 billion on the same basis. GAAP reported sales were 8.4% lower than the prior-year quarter's $1.60 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 -$1.67. The six earnings estimates compiled by S&P Capital IQ predicted -$1.04 per share. Non-GAAP EPS were -$1.67 for Q4 against -$0.05 per share for the prior-year quarter. GAAP EPS were -$3.45 for Q4 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 55.9%, 390 basis points worse than the prior-year quarter. Operating margin was -4.3%, much worse than the prior-year quarter. Net margin was -40.5%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.46 billion. On the bottom line, the average EPS estimate is -$0.56.
Next year's average estimate for revenue is $5.93 billion. The average EPS estimate is -$2.08.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 376 members out of 411 rating the stock outperform, and 35 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give NII Holdings a green thumbs-up, and seven 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 $9.42.
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