Boingo Wireless Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Boingo Wireless (NAS: WIFI) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q4), Boingo Wireless beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share contracted significantly.


Margins contracted across the board.

Revenue details
 Boingo Wireless reported revenue of $28.0 million. The six analysts polled by S&P Capital IQ hoped for revenue of $27.5 million on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $25.9 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 $0.03. The five earnings estimates compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.03 for Q4 were 40% lower than the prior-year quarter's $0.05 per share.

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 41.5%, 440 basis points worse than the prior-year quarter. Operating margin was 7.4%, 820 basis points worse than the prior-year quarter. Net margin was 4.1%, 340 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $24.8 million. On the bottom line, the average EPS estimate is $0.02.

Next year's average estimate for revenue is $112.9 million. The average EPS estimate is $0.15.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 73 members out of 78 rating the stock outperform, and five members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Boingo Wireless a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Boingo Wireless is outperform, with an average price target of $10.25.

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The article Boingo Wireless 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. TMFDisclosureHere

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