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Can MetroPCS Communications Beat These Numbers?

By Seth Jayson - Updated Apr 7, 2017 at 12:09PM

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Checking expectations

MetroPCS Communications (NYSE: PCS) is expected to report Q3 earnings on Oct. 30. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict MetroPCS Communications's revenues will grow 3.9% and EPS will expand 42.1%.

The average estimate for revenue is $1.25 billion. On the bottom line, the average EPS estimate is $0.27.

Revenue details
Last quarter, MetroPCS Communications logged revenue of $1.28 billion. GAAP reported sales were 5.9% higher than the prior-year quarter's $1.21 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.41. GAAP EPS of $0.41 for Q2 were 78% higher than the prior-year quarter's $0.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 49.6%, 820 basis points better than the prior-year quarter. Operating margin was 24.5%, 700 basis points better than the prior-year quarter. Net margin was 11.6%, 460 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.06 billion. The average EPS estimate is $0.81.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 435 members out of 478 rating the stock outperform, and 43 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give MetroPCS Communications a green thumbs-up, and 16 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on MetroPCS Communications is hold, with an average price target of $8.74.

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