ATN International Reports Smaller Loss; What’s Next for the Company?

ATN International (ATNI) announced a quarterly loss of $0.10 per share, improving upon the Zacks Consensus Estimate of a $0.16 loss. This marks an improvement from the loss of $0.24 per share recorded a year ago, as these figures account for non-recurring items.

This quarterly performance exceeded expectations by 37.50%. In the previous quarter, ATN was projected to report a loss of $0.26 per share but surprised investors by posting earnings of $0.50, resulting in an impressive surprise of 292.31%.

Over the past year, ATN International has met or exceeded consensus EPS estimates in two of the last four quarters.

Revenue Performance Falls Short

ATN International, part of the Zacks Wireless National industry, generated revenues of $178.45 million for the quarter ending September 2024. Unfortunately, this figure fell short of the Zacks Consensus Estimate by 3.90% and compared unfavorably to revenues of $191.04 million from the same quarter last year. The company has also exceeded revenue estimates in two of the last four quarters.

The sustainability of ATN’s stock price will largely rely on insights from management’s comments during the earnings call regarding future earnings expectations.

So far this year, ATN International shares have decreased by approximately 18.8%, contrasting with the S&P 500’s increase of 22.1%.

What Lies Ahead for ATN International?

Despite ATN International’s struggles in the market this year, investors are concerned about the company’s future. Their primary focus should be on this firm’s earnings forecast, which encompasses consensus earnings expectations for future quarters and recent revisions to those estimates.

Research suggests a close relationship between stock movements and changes in earnings estimate revisions. Investors can either follow these revisions personally or utilize reputable tools like the Zacks Rank, known for its effectiveness in predicting stock movements related to earnings estimates.

Leading up to this earnings report, ATN International’s estimate revisions trend has been favorable. Although the revisions could shift following the recent earnings release, the current data gives the stock a Zacks Rank #2 (Buy), indicating a potential outperformance in the near term. Interested investors can check the complete list of Zacks #1 Rank (Strong Buy) stocks for additional ideas.

Looking ahead, consensus EPS estimates suggest $0.07 for the upcoming quarter based on expected revenues of $187.27 million, and $0.09 with $743.01 million in revenues for the current fiscal year.

Industry Context Matters

Investors should recognize that industry trends also influence ATN’s stock performance. The Wireless National industry currently ranks in the top 30% of over 250 Zacks industries. Historical data reveals that the upper half of Zacks-ranked industries typically outperform the lower half by a ratio exceeding 2 to 1.

Another player in the same industry, Gogo (GOGO), has yet to share its results for the quarter ending September 2024, with a release date set for November 5. Gogo is expected to report earnings of $0.05 per share, reflecting a substantial year-over-year decline of 68.8%. Its projected revenues stand at $96.95 million, slightly down by 1% compared to the previous year.

Is ATN International Worth Your Investment?

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ATN International, Inc. (ATNI): Free Stock Analysis Report

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.