Clearwire Increases Sales but Misses Estimates on Earnings

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Clearwire (NAS: CLWR) reported earnings on Feb. 15. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share dropped.

Margins improved across the board.

Revenue details
Clearwire reported revenue of $361.9 million. The 12 analysts polled by S&P Capital IQ foresaw revenue of $356.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $180.7 million.

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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
Non-GAAP EPS came in at -$0.37. The 12 earnings estimates compiled by S&P Capital IQ predicted -$0.35 per share on the same basis. GAAP EPS were -$0.81 for Q4 versus -$2.01 per share for the prior-year quarter.

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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 20.5%, 5,280 basis points better than the prior-year quarter. Operating margin was -84.0%, 20,100 basis points better than the prior-year quarter. Net margin was -65.5%, 540 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $302.8 million. On the bottom line, the average EPS estimate is -$0.39.

Next year's average estimate for revenue is $1.20 billion. The average EPS estimate is -$1.66.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 567 members out of 683 rating the stock outperform, and 116 members rating it underperform. Among 136 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Clearwire a green thumbs-up, and 36 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is outperform, with an average price target of $3.19.

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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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