The 10-second takeaway
For the quarter ended March 31 (Q1), MetroPCS Communications met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. GAAP earnings per share contracted.
Gross margins grew, operating margins expanded, net margins contracted.
MetroPCS Communications tallied revenue of $1.29 billion. The 17 analysts polled by S&P Capital IQ expected revenue of $1.29 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.05. The 20 earnings estimates compiled by S&P Capital IQ anticipated $0.09 per share. GAAP EPS of $0.05 for Q1 were 17% lower than the prior-year quarter's $0.06 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 37.0%, 340 basis points better than the prior-year quarter. Operating margin was 8.4%, 60 basis points better than the prior-year quarter. Net margin was 1.5%, 10 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.26 billion. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $5.07 billion. The average EPS estimate is $0.69.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 446 members out of 486 rating the stock outperform, and 40 members rating it underperform. Among 84 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 71 give MetroPCS Communications 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 MetroPCS Communications is hold, with an average price target of $10.59.
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