Ascent Capital Group
The 10-second takeaway
For the quarter ended March 31 (Q1), Ascent Capital Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share grew.
Gross margins contracted, operating margins increased, net margins grew.
Ascent Capital Group recorded revenue of $100.2 million. The four analysts polled by S&P Capital IQ expected to see revenue of $99.9 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $81.9 million.
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 $0.16. The three earnings estimates compiled by S&P Capital IQ predicted -$0.52 per share. Non-GAAP EPS of $0.16 for Q1 were 33% lower than the prior-year quarter's $0.24 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were $0.19 for Q1 versus -$0.37 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 84.8%, 170 basis points worse than the prior-year quarter. Operating margin was 19.0%, 310 basis points better than the prior-year quarter. Net margin was 2.8%, 920 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $101.9 million. On the bottom line, the average EPS estimate is -$0.52.
Next year's average estimate for revenue is $416.3 million. The average EPS estimate is -$2.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 13 members out of 16 rating the stock outperform, and three members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Ascent Capital Group 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 Ascent Capital Group is outperform, with an average price target of $77.00.
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