The Gory Details on Partner Communications' Double Fumble
Partner Communications (NAS: PTNR) reported earnings on May 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Partner Communications missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
Partner Communications reported revenue of $423.7 million. The two analysts polled by S&P Capital IQ wanted to see a top line of $466.0 million on the same basis. GAAP reported sales were 17% lower than the prior-year quarter's $509.5 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 $0.25. The one earnings estimate compiled by S&P Capital IQ predicted $0.46 per share. GAAP EPS of $0.25 for Q1 were 47% lower than the prior-year quarter's $0.47 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 28.2%, 470 basis points worse than the prior-year quarter. Operating margin was 15.8%, 680 basis points worse than the prior-year quarter. Net margin was 9.3%, 500 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $484.9 million. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $1.71 billion. The average EPS estimate is $1.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 524 members out of 540 rating the stock outperform, and 17 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Partner Communications 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 Partner Communications is hold, with an average price target of $12.44.
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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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