Virgin Media Beats Expectations but Takes a Step Back Anyway

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Virgin Media (NAS: VMED) reported earnings on Feb. 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Virgin Media met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share increased significantly.

Margins improved across the board.

Revenue details
Virgin Media booked revenue of $1.59 billion. The eight analysts polled by S&P Capital IQ predicted a top line of $1.59 billion on the same basis. GAAP reported sales were 1.7% higher than the prior-year quarter's $1.57 billion.

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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 four earnings estimates compiled by S&P Capital IQ forecast $0.16 per share. GAAP EPS of $0.25 for Q4 were 47% higher than the prior-year quarter's $0.17 per share.

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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 60.6%, 130 basis points better than the prior-year quarter. Operating margin was 16.3%, 510 basis points better than the prior-year quarter. Net margin was 4.7%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.58 billion. On the bottom line, the average EPS estimate is $0.11.

Next year's average estimate for revenue is $6.49 billion. The average EPS estimate is $1.77.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Virgin Media is outperform, with an average price target of $32.55.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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