Leap Wireless International
The 10-second takeaway
For the quarter ended March 31 (Q1), Leap Wireless International beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. Non-GAAP loss per share grew. GAAP loss per share grew.
Margins dropped across the board.
Leap Wireless International notched revenue of $789.9 million. The 16 analysts polled by S&P Capital IQ anticipated a top line of $734.9 million 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 -$1.49. The 16 earnings estimates compiled by S&P Capital IQ forecast -$1.20 per share. Non-GAAP EPS were -$1.49 for Q1 versus -$1.28 per share for the prior-year quarter. GAAP EPS were -$1.43 for Q1 against -$1.28 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 35.5%, 280 basis points worse than the prior-year quarter. Operating margin was -4.3%, 240 basis points worse than the prior-year quarter. Net margin was -14.1%, 220 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $737.1 million. On the bottom line, the average EPS estimate is -$1.01.
Next year's average estimate for revenue is $2.94 billion. The average EPS estimate is -$4.91.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 186 members out of 242 rating the stock outperform, and 56 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 37 give Leap Wireless International a green thumbs-up, and 12 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 $5.38.
Is Leap Wireless International the best telecom bet for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average telecom company. Click here for instant access to this free report.
- Add Leap Wireless International to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
T-Mobile US Inc Is Crushing Leap Wireless
Leap Wireless continues to post customer losses thanks to aggressive strategies by T-Mobile. This comes just as AT&T prepares to complete its acquisition of Leap.
How T-Mobile US Inc Is Eating AT&T's Lunch Right Now
AT&T is preparing to close its acquisition of Leap Wireless, but T-Mobile is stealing Cricket customers left and right. Can Ma Bell make it work?
AT&T Is Up Only 3% in 2013 -- Will 2014 Be Better?
AT&T had a tough year in 2013. Will 2014 treat AT&T investors better, or will the changing mobile market keep knocking Ma Bell around?