The 10-second takeaway
For the quarter ended Dec. 31 (Q4), General Communication beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.
Gross margins contracted, operating margins increased, net margins increased.
General Communication notched revenue of $183.7 million. The three analysts polled by S&P Capital IQ expected a top line of $177.6 million on the same basis. GAAP reported sales were 8.8% higher than the prior-year quarter's $168.8 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 $0.01. The three earnings estimates compiled by S&P Capital IQ predicted $0.09 per share. GAAP EPS were $0.01 for Q4 versus -$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 62.0%, 500 basis points worse than the prior-year quarter. Operating margin was 10.5%, 100 basis points better than the prior-year quarter. Net margin was 0.3%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $178.0 million. On the bottom line, the average EPS estimate is $0.06.
Next year's average estimate for revenue is $764.6 million. The average EPS estimate is $0.32.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 29 members out of 51 rating the stock outperform, and 22 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give General Communication a green thumbs-up, and six 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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