MetroPCS Communications Earnings: Here’s Why Investors Don’t Like These Results

MetroPCS Communications, Inc. (NYSE:PCS) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.25%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

MetroPCS Communications, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 16.67% to $0.05 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Rose 0.82% to $1.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: MetroPCS Communications, Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.09. It missed the average revenue estimate of $1.29 billion.

Quoting Management: Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, “We are pleased with first quarter momentum highlighted by the lowest quarterly churn in company history, and continued growth in our 4G LTE subscribers. At the end of the first quarter, we had over 3.5 million 4G LTE subscribers, representing approximately 39% of our total subscriber base, which was an increase of 1.2 million over December 31, 2012. Financially, Adjusted EBITDA grew 11% year over year to $291 million. Our 4G LTE network offers a superior customer experience and is meeting our customers’ current demands for high-speed wireless broadband service. Throughout 2013, we plan to continue efforts to fully leverage the capabilities afforded by our high-speed 4G LTE network.”

Key Stats (on next page)…

Revenue increased 0.21% from $1.28 billion in the previous quarter. EPS decreased 44.44% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.25 to a profit $0.23. For the current year, the average estimate has moved down from a profit of $0.75 to a profit of $0.68 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)