Monday, February 25, 2013

Can NII Holdings Beat These Numbers?

NII Holdings (Nasdaq: NIHD  ) is expected to report Q4 earnings on Feb. 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict NII Holdings's revenues will shrink -7.5% and EPS will remain in the red.

The average estimate for revenue is $1.48 billion. On the bottom line, the average EPS estimate is -$0.95.

Revenue details
Last quarter, NII Holdings logged revenue of $1.49 billion. GAAP reported sales were 15% lower than the prior-year quarter's $1.75 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at -$0.48. GAAP EPS were -$0.48 for Q3 compared to $0.00 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 57.7%, 290 basis points worse than the prior-year quarter. Operating margin was 3.1%, 930 basis points worse than the prior-year quarter. Net margin was -5.5%, 550 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $6.10 billion. The average EPS estimate is -$1.78.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 374 members out of 409 rating the stock outperform, and 35 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give NII Holdings a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NII Holdings is hold, with an average price target of $10.70.

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