Leap Wireless International
The 10-second takeaway
For the quarter ended March 31 (Q1), Leap Wireless International met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share improved.
Gross margin dropped, operating margin increased, and net margin grew.
Leap Wireless International booked revenue of $825.6 million. The 21 analysts polled by S&P Capital IQ expected revenue of $831.5 million on the same basis. GAAP reported sales were 5.9% higher than the prior-year quarter's $779.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$1.27. The 19 earnings estimates compiled by S&P Capital IQ anticipated -$1.02 per share on the same basis. GAAP EPS were -$1.28 for Q1 against -$1.26 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 38.3%, 200 basis points worse than the prior-year quarter. Operating margin was -1.9%, 40 basis points better than the prior-year quarter. Net margin was -11.9%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $845.3 million. On the bottom line, the average EPS estimate is -$0.54.
Next year's average estimate for revenue is $3.40 billion. The average EPS estimate is -$3.24.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 173 members out of 219 rating the stock outperform, and 46 members rating it underperform. Among 39 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Leap Wireless International a green thumbs-up, and six 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 $10.82.
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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.