Leap Wireless International Misses Where It Counts
Leap Wireless International (NAS: LEAP) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Leap Wireless International met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share improved.
Gross margin dropped, operating margin increased, and net margin grew.
Leap Wireless International booked revenue of $825.6 million. The 21 analysts polled by S&P Capital IQ expected revenue of $831.5 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $779.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$1.27. The 19 earnings estimates compiled by S&P Capital IQ anticipated -$1.02 per share on the same basis. GAAP EPS were -$1.28 for Q1 against -$1.26 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.3%, 200 basis points worse than the prior-year quarter. Operating margin was -1.9%, 40 basis points better than the prior-year quarter. Net margin was -11.9%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $845.3 million. On the bottom line, the average EPS estimate is -$0.54.
Next year's average estimate for revenue is $3.40 billion. The average EPS estimate is -$3.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 173 members out of 219 rating the stock outperform, and 46 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Leap Wireless International a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Leap Wireless International is hold, with an average price target of $10.82.
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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.