SureWest Communications Crushes Earnings Estimates
SureWest Communications (NAS: SURW) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), SureWest Communications beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded, and GAAP earnings per share contracted significantly.
Margins dropped across the board.
SureWest Communications recorded revenue of $63.5 million. The four analysts polled by S&P Capital IQ anticipated revenue of $62.8 million on the same basis. GAAP reported sales were 3.1% higher than the prior-year quarter's $61.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.11. The two earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS of $0.11 for Q4 were 21% lower than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.5%, 130 basis points worse than the prior-year quarter. Operating margin was 7%, 60 basis points worse than the prior-year quarter. Net margin was 2.3%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $63.1 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $256.8 million. The average EPS estimate is $0.40.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 44 members rating the stock outperform and 14 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give SureWest Communications 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 SureWest Communications is outperform, with an average price target of $16.40.
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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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