The Gory Details on Hawaiian Telcom Holdco's Double Miss

Seth Jayson, The Motley Fool
Updated

Hawaiian Telcom Holdco (NAS: HCOM) reported earnings on May 6. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Hawaiian Telcom Holdco missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share expanded significantly.


Gross margins contracted, operating margins shrank, net margins grew.

Revenue details
 Hawaiian Telcom Holdco recorded revenue of $96.0 million. The four analysts polled by S&P Capital IQ wanted to see net sales of $98.9 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

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 $0.25. The three earnings estimates compiled by S&P Capital IQ forecast $0.31 per share. Non-GAAP EPS of $0.25 for Q1 were 51% lower than the prior-year quarter's $0.51 per share. GAAP EPS of $0.17 for Q1 were much higher than the prior-year quarter's $0.02 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 58.0%, 20 basis points worse than the prior-year quarter. Operating margin was 8.9%, 250 basis points worse than the prior-year quarter. Net margin was 1.9%, 170 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $98.4 million. On the bottom line, the average EPS estimate is $0.27.

Next year's average estimate for revenue is $395.6 million. The average EPS estimate is $1.14.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with nine members out of 11 rating the stock outperform, and two members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Hawaiian Telcom Holdco a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hawaiian Telcom Holdco is buy, with an average price target of $27.00.

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The article The Gory Details on Hawaiian Telcom Holdco's Double Miss 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 position in any of the stocks mentioned. 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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