Leap Wireless International Inc. Earnings Cheat Sheet: Quarterly Loss Narrows

Leap Wireless International, Inc.’s (NASDAQ:LEAP) third quarter loss narrowed due mainly to positive revenue growth. Leap Wireless International is a wireless communications carrier that offers digital wireless services in the United States of America under the Cricket brand.

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Leap Wireless International Earnings Cheat Sheet for the Third Quarter

Results: 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.

Actual vs. Wall St. Expectations: LEAP fell short of the mean analyst estimate of a loss of 80 cents per share. Analysts were expecting revenue of $763.7 million.

Quoting Management: “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.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 37 cents in the second quarter, by 16 cents in the first quarter, and by 42 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 20% to $760.5 million in the second quarter. The figure rose 19.3% in the first quarter from the year earlier and climbed 34.7% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than ninety days ago. The average estimate for the fourth quarter has moved from a loss of 71 cents a share to a loss of $1.18 over the last ninety days. For the fiscal year, the average estimate has moved from a loss of $2.87 a share to a loss of $4.02 over the last ninety days.

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).

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(Source: Xignite Financials)