The 10-second takeaway
For the quarter ended March 31 (Q1), Oi missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins contracted, net margins shrank.
Oi reported revenue of $3.48 billion. The four analysts polled by S&P Capital IQ foresaw a top line of $3.53 billion on the same basis. GAAP reported sales were 66% higher than the prior-year quarter's $2.10 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 $0.08. The two earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS of $0.08 for Q1 were 75% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.2%, much better than the prior-year quarter. Operating margin was 16.1%, 160 basis points worse than the prior-year quarter. Net margin was 3.7%, 530 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.58 billion. On the bottom line, the average EPS estimate is $0.04.
Next year's average estimate for revenue is $14.41 billion. The average EPS estimate is $0.34.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 543 members out of 559 rating the stock outperform, and 16 members rating it underperform. Among 83 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 79 give Oi a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oi is hold, with an average price target of $4.00.
Is Oi 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 Oi to My Watchlist.