2 Telecom Stocks Heavily Traded After Earnings

Leap Wireless International, Inc.’s (NASDAQ:LEAP) third quarter loss narrowed due mainly to positive revenue growth. Loss narrowed to $68.8 million (loss of 90 cents per diluted share) from $536.3 million (loss of $7.06 per share) in the same quarter a year earlier. Revenue rose 19.6% to $763.3 million from the year earlier quarter. LEAP fell short of the mean analyst estimate of a loss of 80 cents per share. Analysts were expecting revenue of $763.7 million.

“Our third quarter results reflect the benefits of the devices, service plans and nationwide 3G voice and data network coverage that we have introduced,” said Doug Hutcheson, Leap’s president and chief executive officer. “Our voice net additions improved by more than 245,000 customers year-over-year, reflecting continued improvements in gross customer additions and voice churn of 3.4 percent, a 180 basis point improvement year-over-year.”

Competitors to Watch: MetroPCS Communications, Inc. (NYSE:PCS), United States Cellular Corp. (NYSE:USM), Sprint Nextel Corporation (NYSE:S), Telephone & Data Systems, Inc. (NYSE:TDS), Verizon Communications Inc. (NYSE:VZ), Clearwire Corporation (NASDAQ:CLWR), NTELOS Holdings Corp. (NASDAQ:NTLS), AT&T Inc. (NYSE:T), Shenandoah Telecommunications Co. (NASDAQ:SHEN), and USA Mobility, Inc. (NASDAQ:USMO).

MetroPCS Communications Inc. (NYSE:PCS) reported its results for the third quarter. Net income for MetroPCS Communications Inc. fell to $64 million (19 cents per share) vs. $77.3 million (22 cents per share) a year earlier. This is a decline of 17.2% from the year earlier quarter. Revenue rose 18.1% to $1.21 billion from the year earlier quarter. PCS fell short of the mean analyst estimate of 23 cents per share. Analysts were expecting revenue of $1.22 billion.

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, “We reported solid results during a seasonally slow period and during challenging economic times. Subscriber growth of 69 thousand was driven primarily by our strong sales of Android Smartphones. Throughout the remainder of 2011 and in 2012 we plan to further enhance our Android Smartphone offerings which allow access to compelling applications and products including our recently introduced Rhapsody music service.”

Competitors to Watch: Leap Wireless Intl., Inc. (NASDAQ:LEAP), Verizon Communications Inc. (NYSE:VZ), Sprint Nextel Corporation (NYSE:S), NTELOS Holdings Corp. (NASDAQ:NTLS), Telephone & Data Systems, Inc. (NYSE:TDS), United States Cellular Corp. (NYSE:USM), AT&T Inc. (NYSE:T), Shenandoah Telecommunications Co. (NASDAQ:SHEN), Clearwire Corporation (NASDAQ:CLWR), and Deutsche Telekom AG (DTEGY).

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