ATN International (ATNI) Reports Q3 Loss, Lags Revenue Estimates

ATN International (ATNI) reported a loss of $0.10 per share for the third quarter of 2024, which is better than the Zacks Consensus Estimate of a loss of $0.16. This is an improvement from a loss of $0.24 per share recorded in the same quarter last year. These figures are adjusted for non-recurring items.

This latest report indicates an earnings surprise of 37.50%. In the previous quarter, analysts had anticipated that this telecommunications services provider would report a loss of $0.26 per share. However, ATN International surprised the market by delivering earnings of $0.50 per share, showcasing a remarkable surprise of 292.31%.

Over the past year, the company has exceeded consensus EPS estimates in two of the last four quarters.

For the quarter ending September 2024, ATN International generated revenues of $178.45 million. Unfortunately, this figure fell short of the Zacks Consensus Estimate by 3.90%. In comparison, the company's revenue for the same quarter last year was $191.04 million. Over the past four quarters, ATN has surpassed consensus revenue estimates on two occasions.

The stock's immediate price movement could hinge on management's comments during the upcoming earnings call, which will provide insights into future earnings expectations.

Year-to-date, ATN International shares have decreased by approximately 18.8%, contrasting with the S&P 500, which has gained 22.1% during the same period.

What’s Next for ATN International?

Despite ATN International's underperformance in comparison to the market this year, investors should consider the future trajectory of the stock.

Determining this future is not straightforward, but one useful metric could be the company's earnings outlook. This outlook encompasses current consensus earnings expectations for upcoming quarters as well as any recent changes in these expectations.

Research indicates a strong link between short-term stock performance and earnings estimate revisions. Investors can monitor these revisions themselves or utilize the Zacks Rank, which is known for effectively integrating the impact of earnings estimate changes.

Prior to this earnings release, the trend in earnings estimate revisions for ATN International was rated positively. Although this may change due to the recent earnings report, the current standing results in a Zacks Rank of #2 (Buy) for the stock, suggesting that its shares are poised to outperform the market in the near term.

It will be noteworthy to observe how the estimates for the next quarters and the ongoing fiscal year evolve in the upcoming days. At present, the consensus EPS estimate for the next quarter stands at $0.07, with revenues expected to be around $187.27 million. For the current fiscal year, the EPS estimate is projected at $0.09 on revenues of $743.01 million.

Moreover, investors should keep in mind that the industry's outlook can significantly impact the stock's performance. According to the Zacks Industry Rank, the Wireless National sector is currently positioned in the top 30% of over 250 ranked Zacks industries. Historical data shows the top half of Zacks-ranked industries tend to outperform those in the bottom half by more than a factor of two.

Gogo (GOGO), another player in the same industry, has yet to reveal its results for the quarter ending September 2024, with its report expected on November 5. Gogo's anticipated quarterly earnings of $0.05 per share would reflect a substantial year-over-year decline of 68.8%. The EPS estimates for this quarter have remained stable over the past month, with revenues projected at $96.95 million, indicating a 1% decrease compared to the same quarter last year.

Earnings, Revenue, Stocks