The 10-second takeaway
For the quarter ended March 31 (Q1), Cincinnati Bell beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted. Non-GAAP earnings per share shrank significantly. GAAP earnings per share shrank to a loss.
Margins contracted across the board.
Cincinnati Bell chalked up revenue of $325.7 million. The seven analysts polled by S&P Capital IQ expected net sales of $307.8 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $362.8 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 $0.01. The seven earnings estimates compiled by S&P Capital IQ forecast $0.00 per share. Non-GAAP EPS of $0.01 for Q1 were 83% lower than the prior-year quarter's $0.06 per share. GAAP EPS were -$0.19 for Q1 versus $0.05 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 50.3%, 400 basis points worse than the prior-year quarter. Operating margin was 18.4%, 420 basis points worse than the prior-year quarter. Net margin was -11.3%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $303.7 million. On the bottom line, the average EPS estimate is $0.01.
Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is $0.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 163 members out of 177 rating the stock outperform, and 14 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 give Cincinnati Bell a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cincinnati Bell is hold, with an average price target of $4.15.
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