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The Gory Details on Leap Wireless International's Double Fumble

Leap Wireless International (Nasdaq: LEAP  ) reported earnings on Feb. 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Leap Wireless International missed estimates on revenues and missed expectations on earnings per share.

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

Margins improved across the board.

Revenue details
Leap Wireless International recorded revenue of $767.4 million. The 20 analysts polled by S&P Capital IQ foresaw net sales of $808.0 million on the same basis. GAAP reported sales were 4.9% lower than the prior-year quarter's $807.0 million.

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

EPS details
Non-GAAP EPS came in at -$1.18. The 20 earnings estimates compiled by S&P Capital IQ predicted -$1.09 per share on the same basis. GAAP EPS were -$1.10 for Q4 against -$3.28 per share for the prior-year quarter.

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 40.1%, 350 basis points better than the prior-year quarter. Operating margin was -1.2%, 200 basis points better than the prior-year quarter. Net margin was -11.0%, 1,990 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $834.6 million. On the bottom line, the average EPS estimate is -$0.97.

Next year's average estimate for revenue is $3.41 billion. The average EPS estimate is -$2.93.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 173 members out of 217 rating the stock outperform, and 44 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Leap Wireless International a green thumbs-up, and four 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 $10.62.

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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 of Motley 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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