S&P 500 (NYSE:SPY) component MetroPCS Communications, Inc. (NYSE:PCS) reported its results for the second quarter. MetroPCS Communications, Inc. is a wireless communications carrier that offers broadband mobile services in the United States.
MetroPCS Communications Earnings Cheat Sheet for the Second Quarter
Results: Net income for the wireless communications company rose to $84.3 million (23 cents per share) vs. $79.9 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 5.5% from the year earlier quarter.
Revenue: Rose 19.4% to $1.21 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: PCS fell short of the mean analyst estimate of 27 cents per share. Analysts were expecting revenue of $1.23 billion.
Quoting Management: “We are pleased with our solid second quarter results in this seasonally slow quarter and with our continued strong sales of Android Smartphones. Momentum for no annual contract mobile broadband wireless service continues to be strong and has resulted in 19% year over year subscriber growth. Financially, we reported the highest Adjusted EBITDA in company history of $357 million, up approximately 11% from last year’s second quarter. The demand for no annual contract, affordable, predictable and flexible wireless service and Android Smartphones is accelerating and we are well-positioned to continue to capture our share as the Android platform provides our subscribers with access to thousands of applications and greater access to multimedia and video,” said Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.8%, with the biggest boost coming in the first quarter when revenue rose 23.1% from the year earlier quarter.
The company has now fallen short of estimates in the last two quarters. In the first quarter, it missed expectations by 3 cents with net income of 16 cents versus a mean estimate of net income of 19 cents per share.
Net income has increased 61.1% year over year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed more than threefold from the year earlier quarter.
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).
(Source: Xignite Financials)