NTELOS Holdings Earnings: Here’s Why Investors are Ambivalent Now

NTELOS Holdings Corp. (NASDAQ:NTLS) delivered a profit 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.

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NTELOS Holdings Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 32.43% to $0.25 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 7.92% to $119.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NTELOS Holdings Corp. reported adjusted EPS income of $0.25 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $120.29 million.

Quoting Management: “During the first quarter of 2013, we continued to reap the benefits of the investments we made in our retail business over the past year,” said James A. Hyde, CEO of NTELOS Holdings Corp. “Retail revenues increased both sequentially and year-over-year as we saw growth in our subscriber base and continued expansion of ARPU. Specifically, we posted our fifth consecutive quarter of both positive net additions and increased ARPU, which together helped drive Adjusted EBITDA growth for the second straight quarter.”

Key Stats (on next page)…

Revenue increased 1.62% from $117.4 million in the previous quarter. EPS increased 1150% from $0.02 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 profit of $0.34 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.31 to a profit of $1.07 over the last ninety days.

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