Consolidated Communications Holdings Crushes Earnings Estimates
Consolidated Communications Holdings (NAS: CNSL) reported earnings on Mar. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Consolidated Communications Holdings beat slightly on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share increased.
Gross margins shrank, operating margins expanded, and net margins improved.
Consolidated Communications Holdings notched revenue of $93.7 million. The four analysts polled by S&P Capital IQ expected to see net sales of $92.0 million on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $93.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.28. The six earnings estimates compiled by S&P Capital IQ predicted $0.22 per share on the same basis. GAAP EPS of $0.26 for Q4 were 13% higher than the prior-year quarter's $0.23 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 62.2%, 120 basis points worse than the prior-year quarter. Operating margin was 16.8%, 80 basis points better than the prior-year quarter. Net margin was 8.4%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $92.1 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $366.8 million. The average EPS estimate is $0.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 71 members out of 82 rating the stock outperform, and 11 members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Consolidated Communications Holdings 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 Consolidated Communications Holdings is hold, with an average price target of $18.42.
New mobile devices and services are changing the game and potential profitability in the telecom industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Consolidated Communications Holdings fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Consolidated Communications Holdings to My Watchlist.
At the time this article was published 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. 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.