NII Holdings: I'm Now in the Bullish Camp

NII Holdings (NIHD) reported better than expected 1Q09 earnings Thursday. I have been torn on this stock for months, particularly since the company pre-announced lower than expected subscriber counts a couple of weeks ago. The quarter has pushed me to the bullish camp and I now plan to hold the shares.

EPS of 43 cents beat consensus handily as costs to add subscribers fell more than expected. Two things working in favor of NIHD's financial result sin 2009 are the facts that lower subscriber additions reduces expenses and the Mexican Peso and Brazilian Real have rallied sharply off their 1Q lows. Continued strong underlying growth excluding currency impact, particularly in Brazil, is also helping.