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USA Mobility Whiffs on Revenues

Tuesday - 4/2/2013, 12:37pm  ET

USA Mobility reported earnings on March 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), USA Mobility whiffed on revenues and missed estimates on earnings per share.

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

Gross margins contracted, operating margins grew, net margins dropped.

Revenue details
USA Mobility logged revenue of $39.9 million. The one analyst polled by S&P Capital IQ foresaw a top line of $54.9 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $58.9 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 $0.33. The one earnings estimate compiled by S&P Capital IQ forecast $0.36 per share. Non-GAAP EPS of $0.33 for Q4 were 23% lower than the prior-year quarter's $0.43 per share. GAAP EPS of $0.30 for Q4 were 64% lower than the prior-year quarter's $0.84 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 71.9%, 280 basis points worse than the prior-year quarter. Operating margin was 31.5%, 580 basis points better than the prior-year quarter. Net margin was 16.4%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $54.2 million. On the bottom line, the average EPS estimate is $0.37.

Next year's average estimate for revenue is $213.1 million. The average EPS estimate is $1.41.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 211 members out of 238 rating the stock outperform, and 27 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 47 give USA Mobility a green thumbs-up, and 11 give it a red thumbs-down.

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This article was originally published as USA Mobility Whiffs on Revenueson Fool.com

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