Virgin Media Earnings: Here’s Why Shares Are Down Now

Virgin Media, Inc. (NASDAQ:VMED) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. The shares shot up yesterday on news of the pending acquisition of Virgin by Liberty Global. Shares are down 2%.

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Virgin Media, Inc. Earnings Cheat Sheet

Results: Net income increased 41.18% to $105.6 million (39 cents per diluted share) in the quarter versus a net gain of $74.8 million in the year-earlier quarter.

Revenue: Rose 6.33% to $1.68 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Virgin Media, Inc. reported adjusted net income of 39 cents per share. By that measure, the company missed the mean analyst estimate of $31.23. It beat the average revenue estimate of $1.05 billion.

Quoting Management: Neil Berkett, Chief Executive Officer of Virgin Media, said: “2012 was a year of record cable customer growth, where mainstream demand for superfast broadband and TiVo has led to lower churn and a strong increase in new subscribers. Combined with growth in our business division, we have delivered solid financial progress.”

Key Stats…

Revenue increased 1.23% from $1.66 billion in the previous quarter. Net income decreased 47.22% from $200.07 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0 to a profit $31. For the current year, the average estimate has moved down from a profit of $106.06 to a profit of $103.13 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)