Boingo Wireless Inc Earnings: Here’s Why the Stock is Falling Now
Boingo Wireless Inc (NASDAQ:WIFI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 23.31%.
Boingo Wireless Inc Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 40% to $0.03 in the quarter versus EPS of $0.05 in the year-earlier quarter.
Revenue: Rose 8.11% to $28 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Boingo Wireless Inc reported adjusted EPS income of $0.03 per share. By that measure, the company missed the mean analyst estimate of $0.06. It beat the average revenue estimate of $27.48 million.
Quoting Management: “2012 was a transition year for Boingo as we positioned our business to capitalize on the massive growth in mobile data and the evolving wireless ecosystem,” said David Hagan, President and Chief Executive Officer of Boingo Wireless. “Our full year performance benefited from growing and investing in our managed and operated and affiliated footprints, adding a crowd-sourced capability to grow our network even faster, investing in our software and technology platform in anticipation of cellular offload and increasing ad sales through the Cloud Nine Media acquisition. Subsequent to quarter end, we were pleased to announce that we have entered into a merger agreement to acquire Endeka Group, Inc. (“Endeka”), the sole provider of commercial Wi-Fi services to United States military bases and federal law enforcement training facilities. Growth in our managed and operated footprint within new verticals and segments is expected to contribute to the longer-term stability of our retail platform.”
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