Neutral Tandem Earnings Preview

Before you go, we thought you'd like these...
Before you go close icon

Neutral Tandem (NAS: TNDM) came in right in line with the Street's expectations last quarter, but investors are hoping it will beat them this quarter. The company will unveil its latest earnings Tuesday. Neutral Tandem provides tandem interconnection services principally to competitive carriers, including wireless, wireline, cable, and broadband telephony companies.

What analysts say:

What our community says:
CAPS All-Stars are solidly backing the stock with 98.2% awarding it an "outperform" rating. The community at large agrees with the All-Stars with 98% assigning it a rating of "outperform." Fools are gung-ho about Neutral Tandem and haven't been shy with their opinions lately, logging 332 posts in the past 30 days. Neutral Tandem has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Neutral Tandem's income has fallen year over year by an average of 19.9%. Revenue has now gone up for three straight quarters. The company raised its gross margin by 5.5 percentage points in the last quarter. Revenue rose 48.2% while cost of sales rose 29.9% to $25.8 million from a year earlier.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q1

Q4

Q3

Q2

Gross Margin

61.1%

62.3%

65.3%

67.4%

Operating Margin

16.1%

21.1%

28.7%

29.5%

Net Margin

12.3%

9.5%

20.6%

19.0%

We can help you keep tabs on your companies with My Watchlist, our free, personalized service. Add Neutral Tandem now.

The Motley Fool owns shares of Neutral Tandem.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

At the time this article was published

Copyright © 1995 - 2011 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners