The Gory Details on Leap Wireless International's Double Miss
Leap Wireless International (NAS: LEAP) reported earnings on Aug. 6. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Leap Wireless International missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP loss per share dropped.
Margins expanded across the board.
Leap Wireless International chalked up revenue of $786.8 million. The 20 analysts polled by S&P Capital IQ wanted to see a top line of $839.3 million on the same basis. GAAP reported sales were 3.4% higher than the prior-year quarter's $760.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.54. The 22 earnings estimates compiled by S&P Capital IQ anticipated -$0.51 per share. GAAP EPS were -$0.54 for Q2 compared to -$0.85 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 45.6%, 180 basis points better than the prior-year quarter. Operating margin was 4.1%, 180 basis points better than the prior-year quarter. Net margin was -5.3%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $845.7 million. On the bottom line, the average EPS estimate is -$0.73.
Next year's average estimate for revenue is $3.37 billion. The average EPS estimate is -$3.64.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 183 members out of 234 rating the stock outperform, and 51 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Leap Wireless International a green thumbs-up, and 13 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 $7.93.
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The article The Gory Details on Leap Wireless International's Double Miss 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.