Leap Wireless International
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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