Ascent Capital Group Beats Expectations But Takes A Step Back Anyway
Ascent Capital Group (NAS: ASCMA) reported earnings on May 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Ascent Capital Group met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share shrank significantly. GAAP earnings per share grew.
Gross margins contracted, operating margins increased, net margins grew.
Ascent Capital Group recorded revenue of $100.2 million. The four analysts polled by S&P Capital IQ expected to see revenue of $99.9 million on the same basis. GAAP reported sales were 22% higher than the prior-year quarter's $81.9 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 $0.16. The three earnings estimates compiled by S&P Capital IQ predicted -$0.52 per share. Non-GAAP EPS of $0.16 for Q1 were 33% lower than the prior-year quarter's $0.24 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS were $0.19 for Q1 versus -$0.37 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 84.8%, 170 basis points worse than the prior-year quarter. Operating margin was 19.0%, 310 basis points better than the prior-year quarter. Net margin was 2.8%, 920 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $101.9 million. On the bottom line, the average EPS estimate is -$0.52.
Next year's average estimate for revenue is $416.3 million. The average EPS estimate is -$2.01.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 13 members out of 16 rating the stock outperform, and three members rating it underperform. Among two CAPS All-Star picks (recommendations by the highest-ranked CAPS members), two give Ascent Capital Group 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 Ascent Capital Group is outperform, with an average price target of $77.00.
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The article Ascent Capital Group Beats Expectations But Takes A Step Back Anyway 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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