The Gory Details on USA Mobility's Double Miss

USA Mobility (Nasdaq: USMO ) reported earnings on July 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), USA Mobility missed slightly on revenues and missed estimates on earnings per share.

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

Margins dropped across the board.

Revenue details
USA Mobility chalked up revenue of $56.0 million. The one analyst polled by S&P Capital IQ predicted a top line of $57.1 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $65.2 million.

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 $0.37. The one earnings estimate compiled by S&P Capital IQ forecast $0.53 per share. GAAP EPS of $0.38 for Q2 were 54% lower than the prior-year quarter's $0.82 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 57.3%, 1,620 basis points worse than the prior-year quarter. Operating margin was 24.7%, 40 basis points worse than the prior-year quarter. Net margin was 15.1%, 1,340 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $54.1 million. On the bottom line, the average EPS estimate is $0.49.

Next year's average estimate for revenue is $219.5 million. The average EPS estimate is $1.82.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 206 members out of 233 rating the stock outperform, and 27 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give USA Mobility a green thumbs-up, and 11 give it a red thumbs-down.

Can your portfolio provide you with enough income to last through retirement? You'll need more than USA Mobility. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.


Increase your money and finance knowledge from home

Bonds for Beginners

Learn about fixed income investments.

View Course »

Basics of Diversification

Learn one of the fundamental concepts of building a portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum