Millicom International Cellular (NASDAQ:TIGO) Releases Earnings Results, Misses Estimates By $0.40 EPS

Millicom International Cellular (NASDAQ:TIGO) released its earnings results on Thursday. The technology company reported $0.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.98 by ($0.40), FiscalAI reports. The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.23 billion. Millicom International Cellular had a net margin of 9.19% and a return on equity of 18.39%. The business’s revenue was up 60.8% on a year-over-year basis. During the same period in the prior year, the company earned $1.17 earnings per share.

Here are the key takeaways from Millicom International Cellular’s conference call:

• Millicom delivered 5.4% organic service-revenue growth and record adjusted EBITDA of $1.1 billion, up 7.7%, with a 48% margin. Third-quarter Equity Free Cash Flow rose 27% to $316 million, and the company maintained its full-year target of about $1.1 billion.
• Leverage declined to 2.53, and management said its path to below 2.5 remains intact. Executives also said the Colombia integration’s most intensive phase is largely behind them and expect the market to approach a 50% EBITDA margin in 2027.
• Home customers fell by 86,000 sequentially, reflecting earthquake-related disruption in Colombia and the company’s pricing strategy; management expects continued pressure on home subscriber additions in Q4. B2B growth may also moderate near term as certain projects roll off.
• Millicom reached a settlement resolving pending material litigation and claims in Guatemala, removing a source of financial and regulatory uncertainty. The settlement resulted in a high-double-digit-million-dollar expense in the quarter.

Millicom International Cellular Stock Performance

Shares of TIGO stock traded up $2.03 during trading hours on Thursday, hitting $79.12. 1,341,076 shares of the company were exchanged, compared to its average volume of 1,362,367. The firm has a fifty day simple moving average of $87.57 and a 200 day simple moving average of $83.17. The company has a current ratio of 0.53, a quick ratio of 0.51 and a debt-to-equity ratio of 3.07. Millicom International Cellular has a 52-week low of $46.85 and a 52-week high of $107.13. The stock has a market capitalization of $13.37 billion, a price-to-earnings ratio of 19.98 and a beta of 1.00.

Wall Street Analysts Forecast Growth

TIGO has been the topic of a number of recent analyst reports. Scotiabank lifted their price target on Millicom International Cellular from $52.40 to $60.10 and gave the stock a “sector underperform” rating in a report on Friday, August 7th. JPMorgan Chase & Co. downgraded Millicom International Cellular from an “overweight” rating to a “neutral” rating and upped their price objective for the company from $100.00 to $105.00 in a research note on Tuesday, August 18th. UBS Group raised their target price on Millicom International Cellular from $90.00 to $100.00 and gave the company a “neutral” rating in a research report on Tuesday, July 14th. Weiss Ratings upgraded Millicom International Cellular from a “buy (b)” rating to a “buy (b+)” rating in a research note on Thursday, October 8th. Finally, Royal Bank Of Canada set a $105.00 price target on shares of Millicom International Cellular in a report on Tuesday, August 18th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Millicom International Cellular presently has a consensus rating of “Moderate Buy” and an average target price of $85.68.

Millicom International Cellular Company Profile

Millicom International Cellular SA is a telecommunications and digital services company operating under the Tigo brand in Latin America. The company provides mobile voice and data services, fixed broadband, pay television, cable connectivity and other communications services to consumers, businesses and government organizations.

Its consumer offerings include wireless plans, home internet, television and digital entertainment services. Through Tigo Money and related financial technology products, Millicom also provides mobile money, digital payments and other financial services in selected markets.