Ascent Capital Group Goes Negative
Ascent Capital Group (NAS: ASCMA) reported earnings on May 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Ascent Capital Group beat expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted to a loss.
Gross margin dropped, operating margin expanded, and net margin shrank.
Ascent Capital Group logged revenue of $81.9 million. The two analysts polled by S&P Capital IQ foresaw a top line of $78.4 million on the same basis. GAAP-reported sales were 11% higher than the prior-year quarter's $73.9 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 -$0.20. The one earnings estimate compiled by S&P Capital IQ predicted -$0.10 per share. GAAP EPS were -$0.37 for Q1 against $3.88 per share for 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 86.5%, 110 basis points worse than the prior-year quarter. Operating margin was 15.9%, 860 basis points better than the prior-year quarter. Net margin was -6.4%, 8,110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $78 million. On the bottom line, the average EPS estimate is -$0.01.
Next year's average estimate for revenue is $312.9 million. The average EPS estimate is -$0.33.
Over the decades, small-cap stocks like Ascent Capital Group have provided market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.
- Add Ascent Capital Group to My Watchlist.
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.