The 10-second takeaway
For the quarter ended Dec. 31 (Q4), MetroPCS Communications met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share improved significantly.
Gross margins dropped, operating margins were steady, and net margins grew.
MetroPCS Communications notched revenue of $1.24 billion. The 22 analysts polled by S&P Capital IQ expected revenue of $1.24 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $1.07 billion.
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 $0.25. The 23 earnings estimates compiled by S&P Capital IQ forecast $0.17 per share. GAAP EPS of $0.25 for Q4 were much higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.1%, 220 basis points worse than the prior-year quarter. Operating margin was 17.4%, about the same as the prior-year quarter. Net margin was 7.4%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $5.28 billion. The average EPS estimate is $0.86.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 433 members out of 467 rating the stock outperform, and 34 members rating it underperform. Among 99 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give MetroPCS Communications a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MetroPCS Communications is outperform, with an average price target of $12.25.
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