NII Holdings Earnings: Here’s Why the Stock is Falling Now

NII Holdings Inc. (NASDAQ:NIHD) 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 13.89%.

NII Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-2.30 in the quarter versus EPS of $-0.60 in the year-earlier quarter.

Revenue: Decreased 15.79% to $1.26 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: NII Holdings Inc. reported adjusted EPS loss of $2.30 per share. By that measure, the company missed the mean analyst estimate of $-1.08. It missed the average revenue estimate of $1.34 billion.

Quoting Management: “We’re making progress on a number of initiatives that are key to our goal of improving the fundamentals of our business; however, we continue to experience significant challenges, including the impact of Sprint’s shutdown of its iDEN network in the U.S. on our operations in Mexico,” said Steve Shindler, NII Holdings’ chief executive officer. “While we expect the situation in Mexico will continue to negatively impact our results in the second half of the year, we are working to address these challenges by completing and expanding the coverage of our next generation networks, as well as increasing our marketing efforts to enhance consumer awareness of the new products and services they support. The rigor and discipline that we have added to our next generation network deployment process is enabling us to meet the timeline we set for building our new networks, as evidenced by the recent launch of wireless broadband services in our Sao Paulo market that will enhance our competitive position in Brazil.”

Key Stats (on next page)…

Revenue decreased 10.88% from $1.41 billion in the previous quarter. EPS decreased to $-2.30 in the quarter versus EPS of $-1.21 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 $0.90 to a loss $1.01. For the current year, the average estimate has moved down from a loss of $3.27 to a loss of $3.81 over the last ninety days.

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