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.
New mobile devices and services are changing the game and potential profitability in the wireless industry. Some will fail, some will tread water, and those providing the right services and the right devices will shine. Where does Leap Wireless International fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Leap Wireless International to My Watchlist.
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. The Motley Fool has no positions in the stocks mentioned above. 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.
More from The Motley Fool
T-Mobile US Inc Is Crushing Leap Wireless
Leap Wireless continues to post customer losses thanks to aggressive strategies by T-Mobile. This comes just as AT&T prepares to complete its acquisition of Leap.
How T-Mobile US Inc Is Eating AT&T's Lunch Right Now
AT&T is preparing to close its acquisition of Leap Wireless, but T-Mobile is stealing Cricket customers left and right. Can Ma Bell make it work?
AT&T Is Up Only 3% in 2013 -- Will 2014 Be Better?
AT&T had a tough year in 2013. Will 2014 treat AT&T investors better, or will the changing mobile market keep knocking Ma Bell around?