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.
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