Millicom International Cellular (NASDAQ:TIGO) Issues Earnings Results, Misses Estimates By $0.03 EPS

Key Points

• Millicom International Cellular reported earnings of $0.51 per share, missing analysts' estimates of $0.54 by $0.03, with revenue of $1.37 billion compared to expected $1.40 billion.
• The company cut its dividend payout ratio to 144.23%, having recently paid a quarterly dividend of $0.75, which equates to a yield of 7.1%.
• Analysts have mixed views on the stock, with upgrades from UBS and JPMorgan, while Scotiabank downgraded it, resulting in a consensus rating of "Moderate Buy" and a target price of $38.08.

Millicom International Cellular (NASDAQ:TIGO - Get Free Report) announced its earnings results on Thursday. The technology company reported $0.51 earnings per share for the quarter, missing analysts' consensus estimates of $0.54 by ($0.03), Zacks reports. The company had revenue of $1.37 billion during the quarter, compared to analyst estimates of $1.40 billion. Millicom International Cellular had a return on equity of 10.28% and a net margin of 16.97%.

Millicom International Cellular Stock Performance

NASDAQ:TIGO traded down $0.92 during mid-day trading on Friday, hitting $42.05. The stock had a trading volume of 1,329,169 shares, compared to its average volume of 1,164,641. Millicom International Cellular has a twelve month low of $23.61 and a twelve month high of $43.30. The stock has a market cap of $7.24 billion, a price-to-earnings ratio of 7.42 and a beta of 1.04. The company's 50 day simple moving average is $38.39 and its 200 day simple moving average is $33.15. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.74 and a current ratio of 0.76.

Millicom International Cellular Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Tuesday, July 8th were paid a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 7.1%. The ex-dividend date was Tuesday, July 8th. Millicom International Cellular's dividend payout ratio (DPR) is 144.23%.

Institutional Investors Weigh In On Millicom International Cellular

Several hedge funds have recently bought and sold shares of the company. Acadian Asset Management LLC acquired a new stake in Millicom International Cellular in the 1st quarter valued at about $819,000. Jane Street Group LLC acquired a new stake in Millicom International Cellular in the 1st quarter valued at about $928,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new stake in Millicom International Cellular in the 1st quarter valued at about $8,504,000. Goldman Sachs Group Inc. acquired a new stake in Millicom International Cellular in the 1st quarter valued at about $50,664,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Millicom International Cellular in the 1st quarter valued at about $2,188,000.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on TIGO. UBS Group upped their target price on shares of Millicom International Cellular from $31.50 to $39.50 and gave the stock a "buy" rating in a research note on Friday, May 16th. JPMorgan Chase & Co. increased their price objective on shares of Millicom International Cellular from $41.00 to $50.00 and gave the stock an "overweight" rating in a research note on Tuesday, May 27th. Wall Street Zen upgraded shares of Millicom International Cellular from a "buy" rating to a "strong-buy" rating in a research note on Saturday. Finally, Scotiabank downgraded shares of Millicom International Cellular from a "sector outperform" rating to a "sector perform" rating and set a $37.00 price objective for the company. in a research note on Tuesday, June 17th. Three analysts have rated the stock with a hold rating, three have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, Millicom International Cellular presently has a consensus rating of "Moderate Buy" and a consensus target price of $38.08.

About Millicom International Cellular

Millicom International Cellular SA provides cable and mobile services in Latin America. It offers mobile services, including mobile data and voice, and short message services; and mobile financial services, such as payments, money transfers, international remittances, savings, real-time loans, and micro-insurance.

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