MetroPCS Communications Beats on Both Top and Bottom Lines

Before you go, we thought you'd like these...
Before you go close icon

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

The 10-second takeaway
For the quarter ended June 30 (Q2), MetroPCS Communications beat expectations on revenues and beat expectations on earnings per share.

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


Margins improved across the board.

Revenue details
MetroPCS Communications logged revenue of $1.28 billion. The 21 analysts polled by S&P Capital IQ predicted net sales of $1.26 billion on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $1.21 billion.

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 $0.41. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS of $0.41 for Q2 were 78% higher than the prior-year quarter's $0.23 per share.

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 49.6%, 820 basis points better than the prior-year quarter. Operating margin was 24.5%, 700 basis points better than the prior-year quarter. Net margin was 11.6%, 460 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.24 billion. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $5.02 billion. The average EPS estimate is $0.55.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 440 members out of 481 rating the stock outperform, and 41 members rating it underperform. Among 85 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give MetroPCS Communications a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MetroPCS Communications is hold, with an average price target of $8.74.

New mobile devices and services are changing the game and potential profitability in the wireless industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does MetroPCS Communications fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.

The article MetroPCS Communications Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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. The Motley Fool has no positions in the stocks mentioned above. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners