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

ATN International (ATNI - Free Report) recently announced its quarterly financial results, revealing a loss of $0.10 per share. This figure is notably better than the Zacks Consensus Estimate, which predicted a loss of $0.16 per share. In comparison to the same quarter last year, when the company posted a loss of $0.24 per share, there has been an improvement. These results have been adjusted for non-recurring items.

In this quarter, ATN achieved an earnings surprise of 37.50%. In the previous quarter, the company had been expected to report a loss of $0.26 per share but ended up posting a profit of $0.50 per share, resulting in a remarkable surprise of 292.31%.

Over the last four quarters, ATN International has surpassed consensus earnings per share (EPS) estimates two times, demonstrating some volatility in its earnings expectations.

For the quarter ending September 2024, ATN International recorded revenues of $178.45 million, which fell short of the Zacks Consensus Estimate by 3.90%. This is a decline from the $191.04 million revenues posted in the same quarter last year. Despite this, the company has met or exceeded revenue expectations twice in the last four quarters.

The immediate impact on the stock's price performance will depend significantly on the commentary from management during the earnings call regarding future earnings expectations.

Year-to-date, ATN International shares have declined by approximately 18.8%, contrasting sharply with the S&P 500, which has risen by 22.1% over the same period.

What’s Next for ATN International?

Given ATN International's underperformance compared to market averages this year, investors are understandably curious about the stock's future trajectory.

While predicting the stock's movement is challenging, one useful approach is to consider the company's earnings outlook. This includes current consensus estimates for upcoming quarters as well as any recent changes to these expectations.

Studies have shown a strong link between short-term stock price movements and trends in earnings estimate revisions. Investors can monitor these revisions independently or utilize a rating system such as the Zacks Rank, which has a historical reputation for effectively capturing the significance of earnings estimate changes.

Leading up to this earnings announcement, the revisions trend for ATN International was favorable. Although estimates may shift following the new earnings data, the current environment has resulted in a Zacks Rank of #2 (Buy) for the stock. This indicates a strong potential for the shares to outperform in the near term. The latest list of Zacks #1 Rank (Strong Buy) stocks can be viewed for comparison.

In the coming days, it will be interesting to track how consensus estimates for future quarters and the current fiscal year evolve. Currently, the consensus EPS estimate stands at $0.07, anticipating revenues of $187.27 million for the next quarter, and $0.09 in EPS on revenues of $743.01 million for the entire fiscal year.

Investors should remain aware that the overall industry outlook can greatly influence the stock's performance as well. The Wireless National sector, to which ATN belongs, presently ranks in the top 30% of over 250 Zacks industries. Research indicates that stocks in the upper half of Zacks-ranked industries tend to outperform those in the lower half significantly.

Another competitor in the same sector, Gogo (GOGO - Free Report), has not yet released its earnings results for the quarter ended September 2024. These results are anticipated on November 5.

Gogo, known for its in-flight internet services, is expected to report earnings of $0.05 per share, reflecting a year-over-year decline of 68.8%. The revenue estimate for the upcoming quarter is $96.95 million, down 1% from the previous year.

ATN, Earnings, Stock