Clearwire Earnings: Here’s Why Investors are Not Excited Now

Clearwire Corporation (NASDAQ:CLWR) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.63%.

Clearwire Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.28 in the quarter versus EPS of $-0.81 in the year-earlier quarter.

Revenue: Decreased 14% to $311.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Clearwire Corporation reported adjusted EPS loss of $-0.28 per share. By that measure, the company missed the mean analyst estimate of $-0.22. It missed the average revenue estimate of $313.52 million.

Quoting Management: “In fourth quarter 2012, we have once again delivered solid results resulting in top-line growth and 50% year over year improvement in full year Adjusted EBITDA loss in 2012,” said Erik Prusch, President and CEO of Clearwire. “Our full year 2012 results demonstrate our continued focus on reducing costs, managing revenues and liquidity, and providing exceptional service to our customers during a transition period as we build an LTE network equipped to provide wireless consumers the speeds and capacity they desire.”

Key Stats (on next page)…

Revenue decreased 0.85% from $313.88 million in the previous quarter. EPS increased to $-0.28 in the quarter versus EPS of $-0.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.17 to a loss $0.19. For the current year, the average estimate has moved up from a loss of $1.25 to a loss of $1.23 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)