Clearwire Beats on Both Top and Bottom Lines

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Clearwire (NAS: CLWR) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Clearwire beat expectations on revenues and exceeded expectations on earnings per share.

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


Margins expanded across the board.

Revenue details
Clearwire logged revenue of $322.6 million. The 11 analysts polled by S&P Capital IQ anticipated a top line of $307.8 million on the same basis. GAAP reported sales were 36% higher than the prior-year quarter's $236.8 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
EPS came in at -$0.03. The 10 earnings estimates compiled by S&P Capital IQ averaged -$0.40 per share. GAAP EPS were -$0.44 for Q1 compared to -$0.85 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 18.2%, 1,710 basis points better than the prior-year quarter. Operating margin was -105.8%, 9,250 basis points better than the prior-year quarter. Net margin was -56.4%, 3,940 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $307.8 million. On the bottom line, the average EPS estimate is -$0.41.

Next year's average estimate for revenue is $1.22 billion. The average EPS estimate is -$1.71.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 561 members out of 678 rating the stock outperform, and 117 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give Clearwire a green thumbs-up, and 34 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is hold, with an average price target of $3.10.

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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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