The 10-second takeaway
For the quarter ended March 31 (Q1), NII Holdings missed estimates on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share dropped to a loss. GAAP earnings per share dropped to a loss.
Margins shrank across the board.
NII Holdings reported revenue of $1.41 billion. The eight analysts polled by S&P Capital IQ hoped for revenue of $1.46 billion on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $1.63 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 -$0.46. The 10 earnings estimates compiled by S&P Capital IQ anticipated -$0.70 per share. Non-GAAP EPS were -$0.46 for Q1 against $0.06 per share for the prior-year quarter. GAAP EPS were -$1.21 for Q1 compared to $0.08 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 54.1%, 480 basis points worse than the prior-year quarter. Operating margin was 1.8%, 950 basis points worse than the prior-year quarter. Net margin was -14.7%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.43 billion. On the bottom line, the average EPS estimate is -$0.83.
Next year's average estimate for revenue is $5.75 billion. The average EPS estimate is -$3.11.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 377 members out of 411 rating the stock outperform, and 34 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 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 $7.62.
Is NII Holdings the best telecom bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average telecom company. Click here for instant access to this free report.
- Add NII Holdings to My Watchlist.
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.