The Gory Details on Hawaiian Telcom Holdco's Double Miss

Just the facts, Fool.

Seth Jayson
Seth Jayson
May 6, 2013 at 12:00AM
Other

Hawaiian Telcom Holdco (Nasdaq: HCOM) reported earnings on May 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Hawaiian Telcom Holdco missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share expanded significantly.

Gross margins contracted, operating margins shrank, net margins grew.

Revenue details
Hawaiian Telcom Holdco recorded revenue of $96.0 million. The four analysts polled by S&P Capital IQ wanted to see net sales of $98.9 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 details
EPS came in at $0.25. The three earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. Non-GAAP EPS of $0.25 for Q1 were 51% lower than the prior-year quarter's $0.51 per share. GAAP EPS of $0.17 for Q1 were much higher than the prior-year quarter's $0.02 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 58.0%, 20 basis points worse than the prior-year quarter. Operating margin was 8.9%, 250 basis points worse than the prior-year quarter. Net margin was 1.9%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $98.4 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $395.6 million. The average EPS estimate is $1.14.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with nine members out of 11 rating the stock outperform, and two members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Hawaiian Telcom Holdco a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hawaiian Telcom Holdco is buy, with an average price target of $27.00.

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