Ascent Capital Group Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Ascent Capital Group (NAS: ASCM.A) reported earnings on Aug. 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended June 30 (Q2), Ascent Capital Group beat expectations on revenues and missed expectations on earnings per share.

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


Gross margins dropped, operating margins expanded, net margins expanded.

Revenue details
 Ascent Capital Group logged revenue of $83.3 million. The two analysts polled by S&P Capital IQ hoped for revenue of $79.7 million on the same basis. GAAP reported sales were 7.4% higher than the prior-year quarter's $77.6 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 -$0.41. The two earnings estimates compiled by S&P Capital IQ averaged -$0.32 per share. GAAP EPS were -$0.51 for Q2 compared to -$1.28 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 86.3%, 130 basis points worse than the prior-year quarter. Operating margin was 14.2%, 330 basis points better than the prior-year quarter. Net margin was -8.6%, 1,500 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $81.0 million. On the bottom line, the average EPS estimate is -$0.23.

Next year's average estimate for revenue is $330.5 million. The average EPS estimate is -$0.55.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ascent Capital Group is buy, with an average price target of $65.00.

The article Ascent Capital Group Misses Where it Counts 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 owns shares of ascm.a. 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.

Advertisement