Telecom Argentina Increases Sales but Misses Estimates on Earnings

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Telecom Argentina (NYS: TEO) reported earnings on Feb. 22. Here are the numbers you need to know.

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

Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded.

Margins dropped across the board.

Revenue details
Telecom Argentina booked revenue of $1.19 billion. The six analysts polled by S&P Capital IQ expected to see sales of $1.17 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.06 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
Non-GAAP EPS came in at $0.74. The eight earnings estimates compiled by S&P Capital IQ anticipated $0.77 per share on the same basis. GAAP EPS of $0.14 for Q4 were 7.7% higher than the prior-year quarter's $0.13 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 50.6%, 1,350 basis points worse than the prior-year quarter. Operating margin was 19.0%, 190 basis points worse than the prior-year quarter. Net margin was 11.8%, 40 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.14 billion. On the bottom line, the average EPS estimate is $0.57.

Next year's average estimate for revenue is $4.74 billion. The average EPS estimate is $3.14.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 198 members out of 208 rating the stock outperform, and 11 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Telecom Argentina a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Telecom Argentina is outperform, with an average price target of $25.93.

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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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