Please ensure Javascript is enabled for purposes of website accessibility

MetroPCS Communications Beats Up on Analysts Yet Again

By Seth Jayson - Updated Apr 7, 2017 at 12:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Just the facts, Fool.

MetroPCS Communications (NYSE: PCS) reported earnings on Oct. 30. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

T-Mobile US, Inc. Stock Quote
T-Mobile US, Inc.
TMUS
$134.11 (1.03%) $1.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.