S&P 500 (NYSE:SPY) component MetroPCS Communications, Inc. (NYSE:PCS) reported higher profit for the first quarter as revenue showed growth. MetroPCS Communications, Inc. is a wireless communications carrier that offers broadband mobile services in the United States.
MetroPCS Communications Earnings Cheat Sheet for the First Quarter
Results: Net income for the wireless communications company rose to $56.4 million (15 cents/share) vs. $22.7 million (6 cents/share) in the same quarter a year earlier. A more than twofold rise from the year earlier quarter.
Revenue: Rose 23.1% to $1.19 billion YoY.
Actual vs. Wall St. Expectations: PCS fell short of the mean analyst estimate of 19 cents/share. Estimates ranged from 11 cents per share to 25 cents per share.
Quoting Management: “We reported record net subscriber additions of over seven hundred twenty-five thousand this quarter, the highest in company history. Building on the strong momentum we had throughout 2010, continued interest in our Wireless for All plans and in the significant uptake of our Android Smartphones, total subscriber growth was 21% year over year. We also reported churn of 3.1% representing a significant year over year reduction from first quarter 2010 churn of 3.7%. We believe we are well positioned in this competitive marketplace by providing mobile broadband on cutting-edge Smartphones for an affordable price to our subscribers,” said Roger D. Linquist, Chairman, President and Chief Executive Officer of MetroPCS.
The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 18.3%, with the biggest boost coming in the most recent quarter when revenue rose 23.1% from the year earlier quarter.
Net income has increased 50.3% 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)
Stock Performance: Shares of PCS are up 6% in pre-market trading.