United States Cellular Crushes Earnings Estimates
United States Cellular (NYS: USM) reported earnings on May 4. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), United States Cellular met expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue increased and GAAP earnings per share increased significantly.
Margins grew across the board.
United States Cellular recorded revenue of $1.09 billion. The four analysts polled by S&P Capital IQ predicted revenue of $1.09 billion on the same basis. GAAP reported sales were 3.3% higher than the prior-year quarter's $1.06 billion.
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 $0.73. The six earnings estimates compiled by S&P Capital IQ predicted $0.50 per share. GAAP EPS of $0.73 for Q1 were 83% higher than the prior-year quarter's $0.40 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 61.5%, 50 basis points better than the prior-year quarter. Operating margin was 7.6%, 210 basis points better than the prior-year quarter. Net margin was 5.7%, 250 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.09 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $4.39 billion. The average EPS estimate is $1.94.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 32 members out of 53 rating the stock outperform, and 21 members rating it underperform. Among 12 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give United States Cellular a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on United States Cellular is hold, with an average price target of $40.40.
New mobile devices and services are changing the game and potential profitability in the wireless industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does United States Cellular fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Get instant access to this free report.
- Add United States Cellular to My Watchlist.
At the time this article was published
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.