Why Leap Wireless Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Leap Wireless (Nasdaq: LEAP  ) jumped by as much as 13% today after the company posted better-than-expected earnings.

So what: Service revenue in the third quarter was $722 million, with operating income of $81.4 million. After everything was said and done, Leap posted net income of $26.9 million, or $0.32 per share. That was a pleasant surprise for investors, who were expecting a $0.70-per-share loss.

Now what: Full-year outlook calls for capital expenditures of $450 million to $470 million, including spending to deploy its LTE network. At the same time, Leap also said it was considering alternatives to offer LTE service to customers within its reach, aiming to cover approximately 21 million customers by the end of 2012. Some of these cost-effective alternatives could include deploying facilities-based coverage or partnerships and joint ventures.

Interested in more info on Leap Wireless? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2100580, ~/Articles/ArticleHandler.aspx, 11/27/2014 5:14:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement