UTStarcom Holdings Beats on the Top Line

Seth Jayson, The Motley Fool
Updated

UTStarcom Holdings (NAS: UTSI) reported earnings on March 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), UTStarcom Holdings met expectations on revenue and missed estimates on earnings per share.

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

Margins expanded across the board.

Revenue details
UTStarcom Holdings booked revenue of $83.5 million. The one analyst polled by S&P Capital IQ predicted revenue of $83.1 million on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $76.1 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 one earnings estimate compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS were $0.03 for Q4 versus -$0.15 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 34.2%, 2,360 basis points better than the prior-year quarter. Operating margin was 10.0%, 3,580 basis points better than the prior-year quarter. Net margin was 4.9%, 3,510 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $64.7 million. On the bottom line, the average EPS estimate is $0.04.

Next year's average estimate for revenue is $335.3 million. The average EPS estimate is $0.21.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 145 members out of 185 rating the stock outperform, and 40 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give UTStarcom Holdings a green thumbs-up, and 13 give it a red thumbs-down.

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At the time thisarticle 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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