The 10-second takeaway
For the quarter ended June 30 (Q2), NII Holdings missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP loss per share expanded. GAAP loss per share increased.
Margins contracted across the board.
NII Holdings logged revenue of $1.26 billion. The eight analysts polled by S&P Capital IQ expected a top line of $1.34 billion on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $1.50 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$2.22. The six earnings estimates compiled by S&P Capital IQ predicted -$1.02 per share. Non-GAAP EPS were -$2.22 for Q2 against -$0.60 per share for the prior-year quarter. GAAP EPS were -$2.30 for Q2 compared to -$0.60 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 50.2%, 600 basis points worse than the prior-year quarter. Operating margin was -6.4%, 900 basis points worse than the prior-year quarter. Net margin was -31.5%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.34 billion. On the bottom line, the average EPS estimate is -$0.96.
Next year's average estimate for revenue is $5.48 billion. The average EPS estimate is -$3.56.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 372 members out of 407 rating the stock outperform, and 35 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give NII Holdings a green thumbs-up, and five 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 $7.63.
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