The 10-second takeaway
For the quarter ended Sep. 30 (Q3), MetroPCS Communications met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share expanded significantly.
Margins increased across the board.
MetroPCS Communications reported revenue of $1.26 billion. The 22 analysts polled by S&P Capital IQ wanted to see revenue of $1.26 billion on the same basis. GAAP reported sales were 4.5% 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 came in at $0.38. The 24 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.52 for Q3 were 174% higher than the prior-year quarter's $0.19 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 49.3%, 950 basis points better than the prior-year quarter. Operating margin was 23.3%, 850 basis points better than the prior-year quarter. Net margin was 15.3%, 950 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.28 billion. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $5.05 billion. The average EPS estimate is $0.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 434 members out of 477 rating the stock outperform, and 43 members rating it underperform. Among 80 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 64 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 $9.28.
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