Leap Wireless International
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Leap Wireless International met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share grew.
Gross margins dropped, operating margins dropped, net margins grew.
Leap Wireless International notched revenue of $774.0 million. The 21 analysts polled by S&P Capital IQ expected sales of $774.6 million on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $763.3 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 -$1.14. The 20 earnings estimates compiled by S&P Capital IQ averaged -$0.74 per share. GAAP EPS were $0.32 for Q3 against -$0.90 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 39.2%, 230 basis points worse than the prior-year quarter. Operating margin was -4.2%, 530 basis points worse than the prior-year quarter. Net margin was 3.2%, 1,220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $784.5 million. On the bottom line, the average EPS estimate is -$1.17.
Next year's average estimate for revenue is $3.17 billion. The average EPS estimate is -$3.72.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 181 members out of 232 rating the stock outperform, and 51 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Leap Wireless International a green thumbs-up, and 11 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 $6.05.
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