MetroPCS Communications Meets on Revenue, Misses on EPS

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MetroPCS Communications (NYS: PCS) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), MetroPCS Communications met expectations on revenue and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew and GAAP earnings per share contracted significantly.


Margins shrank across the board.

Revenue details
MetroPCS Communications logged revenue of $1.28 billion. The 25 analysts polled by S&P Capital IQ predicted a top line of $1.29 billion on the same basis. GAAP reported sales were 6.9% higher than the prior-year quarter's $1.19 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.06. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.18 per share. GAAP EPS of $0.06 for Q1 were 60% lower than the prior-year quarter's $0.15 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.6%, 350 basis points worse than the prior-year quarter. Operating margin was 7.8%, 440 basis points worse than the prior-year quarter. Net margin was 1.6%, 310 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $0.25.

Next year's average estimate for revenue is $5.26 billion. The average EPS estimate is $0.88.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 441 members out of 476 rating the stock outperform, and 35 members rating it underperform. Among 88 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give MetroPCS Communications a green thumbs-up, and 13 give it a red thumbs-down.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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