MetroPCS Communications Earnings: RINGS Above Wall Street Expectations

S&P 500 (NYSE:SPY) component MetroPCS Communications Inc. (NYSE:PCS) reported net income above Wall Street’s expectations for the second quarter. MetroPCS Communications is a wireless communications carrier that offers broadband mobile services in the United States.

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MetroPCS Communications Inc. Earnings Cheat Sheet

Results: Net income for MetroPCS Communications Inc. rose to $148.8 million (41 cents per share) vs. $84.3 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 76.5% from the year-earlier quarter.

Revenue: Rose 5.9% to $1.28 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: MetroPCS Communications Inc. beat the mean analyst estimate of 21 cents per share. Analysts were expecting revenue of $1.26 billion.

Quoting Management: Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said, “During the second quarter, we focused on generating Adjusted EBITDA and cash flow versus subscriber growth as we position for our anticipated launch of 4G LTE For All by the end of the third quarter. I’m pleased to report that with this emphasis, we reported both the highest Adjusted EBITDA as well as the highest Adjusted EBITDA margin in Company history as a result of this focus. Second quarter churn of 3.4% was primarily driven by continued investments in our network as well as lower year-to-date subscriber growth.”

Key Stats:

Revenue has increased for four quarters in a row. Revenue increased 6.9% to $1.28 billion in the first quarter. The figure rose 16.2% in the fourth quarter of the last fiscal year from the year earlier and climbed 18.1% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 6 cents versus a mean estimate of net income of 17 cents per share.

Net income has increased more than twofold year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than sixfold from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 17 cents per share, down from 22 cents ninety days ago. The average estimate for the fiscal year is 59 cents per share, down from 87 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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