Virgin Media Misses Where It Counts
Virgin Media (NAS: VMED) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Virgin Media met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share expanded.
Margins improved across the board.
Virgin Media reported revenue of $1.61 billion. The six analysts polled by S&P Capital IQ expected net sales of $1.60 billion on the same basis. GAAP reported sales were 2.1% higher than the prior-year quarter's $1.58 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 $0.03. The two earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. GAAP EPS of $0.03 for Q1 were 200% higher than the prior-year quarter's $0.01 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 58.6%, 50 basis points better than the prior-year quarter. Operating margin was 13.5%, 200 basis points better than the prior-year quarter. Net margin was 0.7%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.65 billion. On the bottom line, the average EPS estimate is $0.39.
Next year's average estimate for revenue is $6.65 billion. The average EPS estimate is $1.61.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Virgin Media is outperform, with an average price target of $33.12.
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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.