Telecom Argentina (NYS: TEO) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Telecom Argentina met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share didn't move.
Gross margins increased, operating margins contracted, and net margins contracted.
Telecom Argentina reported revenue of $1.17 billion. The two analysts polled by S&P Capital IQ predicted net sales of $1.18 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $1.02 billion.
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 $0.81. The five earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.16 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.0%, 350 basis points better than the prior-year quarter. Operating margin was 20.1%, 340 basis points worse than the prior-year quarter. Net margin was 13.6%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $0.67.
Next year's average estimate for revenue is $4.86 billion. The average EPS estimate is $2.78.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 212 members out of 230 rating the stock outperform, and 18 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Telecom Argentina a green thumbs-up, and six 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 $24.78.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Telecom Argentina fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
Add Telecom Argentina to My Watchlist.
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.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.