Fool Checkup: Clearwire Earnings

Seth Jayson, The Motley Fool
Updated

Clearwire (NAS: CLWR) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Clearwire met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP loss per share shrank.


Margins increased across the board.

Revenue details
 Clearwire logged revenue of $316.9 million. The 13 analysts polled by S&P Capital IQ looked for a top line of $320.6 million on the same basis. GAAP reported sales were 1.8% lower than the prior-year quarter's $322.6 million.

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 -$0.26. The 11 earnings estimates compiled by S&P Capital IQ predicted -$0.31 per share. GAAP EPS were -$0.32 for Q2 compared to -$1.01 per share for the prior-year quarter.

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 29.2%, 220 basis points better than the prior-year quarter. Operating margin was -98.1%, 650 basis points better than the prior-year quarter. Net margin was -46.0%, 630 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $319.6 million. On the bottom line, the average EPS estimate is -$0.32.

Next year's average estimate for revenue is $1.28 billion. The average EPS estimate is -$1.41.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 572 members out of 680 rating the stock outperform, and 108 members rating it underperform. Among 125 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give Clearwire a green thumbs-up, and 34 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Clearwire is hold, with an average price target of $2.70.

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The article Fool Checkup: Clearwire Earnings originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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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