The 10-second takeaway
For the quarter ended March 31 (Q1), Clearwire beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP loss per share dropped. GAAP loss per share dropped.
Margins shrank across the board.
Clearwire recorded revenue of $318.0 million. The 10 analysts polled by S&P Capital IQ anticipated sales of $311.0 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 -$0.31. The 10 earnings estimates compiled by S&P Capital IQ forecast -$0.26 per share. Non-GAAP EPS were -$0.31 for Q1 against -$0.40 per share for the prior-year quarter. GAAP EPS were -$0.33 for Q1 compared to -$0.44 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 33.0%, 410 basis points worse than the prior-year quarter. Operating margin was -95.4%, 930 basis points worse than the prior-year quarter. Net margin was -71.4%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $316.0 million. On the bottom line, the average EPS estimate is -$0.27.
Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is -$1.00.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 573 members out of 682 rating the stock outperform, and 109 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Clearwire a green thumbs-up, and 29 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 $3.10.
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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 position in any of the stocks mentioned. 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.