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Leap Wireless International Beats on the Top Line

By Seth Jayson – Updated Apr 10, 2017 at 1:33PM

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Just the facts, Fool.

Leap Wireless International (Nasdaq: LEAP) reported earnings on April 30. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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.

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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. 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.

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