Liberty Latin America Reports Earnings Miss of $0.11, Revenue in Line with Estimates

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Liberty Latin America ($NASDAQ:LILA), a telecommunications and technology provider, recently reported their earnings for the quarter, missing analyst estimates by $0.11. The company provides cable television, broadband internet services, and digital phone services to residential customers and businesses. In addition, the company offers business solutions such as data services, enterprise networks, and cloud-based services. LIBERTY LATIN AMERICA is dedicated to providing high-quality products and services as well as innovative customer experiences for their customers.

Earnings

In Liberty Latin America’s (LLA) earnings report for FY2023 Q2 as of June 30 2021, the company reported total revenue of 1168.0M USD and net income of 4.4M USD. This is a 4.1% decrease in total revenue and a 100.9% decrease in net income compared to the same period last year. Over the past three years, Liberty Latin America’s total revenue has dropped from 1168.0M USD to 1122.7M USD. The company missed earnings estimates by $0.11.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for LILA. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for LILA. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for LILA. More…

Key Ratios Snapshot

Some of the financial key ratios for LILA are shown below. More…

Share Price

Despite the earnings miss, the stock opened at $6.5 and closed at $7.2, soaring by 12.5% from its previous closing price of 6.4. This was a significant jump for the stock and shows an optimistic sentiment from investors in the company’s potential. Furthermore, LIBERTY LATIN AMERICA’s strong revenue numbers also suggest that the company is doing well despite the earnings miss. Live Quote…

Analysis

As part of GoodWhale’s analysis of LIBERTY LATIN AMERICA’s fundamentals, we used the Star Chart to assess the company’s performance. We found that LIBERTY LATIN AMERICA is strong in profitability, with a medium score in growth and a weak score in assets and dividends. Additionally, the intermediate health score of 6/10 signals that LIBERTY LATIN AMERICA is likely to be able to pay off its debt and fund future operations. Our research also classified LIBERTY LATIN AMERICA as a ‘sloth’, meaning that the company has achieved revenue or earnings growth slower than the overall economy. Investors interested in such companies are usually those who favor stability and predictability in their investments. They may prefer companies with steady returns over companies with more potential for high returns, but which also come with higher risks. More…

Peers

In the telecom industry, Liberty Latin America Ltd competes with Zegona Communications PLC, Cogeco Communications Inc, and Asia Pacific Telecom Co Ltd. The company offers fixed-line voice and broadband services, pay TV, mobile services, and enterprise solutions. Zegona Communications PLC is a UK-based holding company that invests in and operates fixed-line, broadband, and mobile telecommunications businesses. Cogeco Communications Inc is a Canadian telecommunications company that offers residential and business customers a range of communications services, including high-speed Internet, video, and telephony. Asia Pacific Telecom Co Ltd is a Taiwan-based company that provides mobile telecommunications services.

– Zegona Communications PLC ($LSE:ZEG)

Zegona Communications PLC is a holding company that engages in the management and operation of its subsidiaries. The company operates through four segments: France, Spain, Portugal, and Other. It provides a range of communications services, including fixed line, mobile, broadband, and television. The company also offers converged communications, data, and IT solutions; and international carrier services. Zegona Communications PLC was founded in 1881 and is headquartered in London, the United Kingdom.

– Cogeco Communications Inc ($TSX:CCA)

Cogeco Communications Inc. is a Canadian telecommunications and media company. The company provides residential and business telephone, Internet and television services through its subsidiaries, Cogeco Connexion and Atlantic Broadband, in Canada and the United States. Cogeco Communications Inc. has a market capitalization of $3.24 billion as of 2022 and a return on equity of 17.02%. The company’s main line of business is providing telecommunications and media services, which it does through its subsidiaries Cogeco Connexion and Atlantic Broadband. Cogeco Communications Inc. is headquartered in Montreal, Quebec, Canada.

– Asia Pacific Telecom Co Ltd ($TWSE:3682)

Asia Pacific Telecom Co Ltd is a Taiwanese telecommunications company with a market cap of 26.22B as of 2022. The company has a Return on Equity of -10.85%. Asia Pacific Telecom Co Ltd is a provider of mobile telecommunications services in Taiwan. The company offers a wide range of mobile telecommunications services, including voice, data, and value-added services.

Summary

Investors reacted positively to Liberty Latin America’s recent earnings report, with the stock price moving up even though the company missed analyst estimates by $0.11 EPS. Revenue was in line with estimates, however, which may explain the market’s enthusiasm for the stock. Analysts will be looking for Liberty Latin America to improve EPS performance going forward in order to continue to attract investor interest. Despite the earnings miss, the company continues to be one of the top performing companies in the Latin American region and has potential growth opportunities in the future.