MetroPCS Communications, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component MetroPCS Communications, Inc. (NYSE:PCS) will unveil its latest earnings on Tuesday, August 2, 2011. MetroPCS Communications, Inc. is a wireless communications carrier that offers broadband mobile services in the United States.

MetroPCS Communications, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 27 cents per share, a rise of 22.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 28 cents. Between one and three months ago, the average estimate was unchanged, but has since dropped during the last month. For the year, analysts are projecting profit of $1.01 per share, a rise of 44.3% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported net income of 16 cents per share against a mean estimate of 19 cents. Two quarters ago, it beat expectations by 2 cents with profit of 20 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.23 billion in revenue this quarter, a rise of 21.8% from the year ago quarter. Analysts are forecasting total revenue of $4.96 billion for the year, a rise of 21.9% from last year’s revenue of $4.07 billion.

Analyst Ratings: Analysts are bullish on MetroPCS Communications as 14 analysts rate it as a buy, two rate it as a sell and 12 rate it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 17.4%, with the biggest boost coming in the most recent quarter when revenue rose 23.1% from the year earlier quarter.

The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose more than twofold to $56.4 million. In the fourth quarter of the last fiscal year, net income fell 59.1%.

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).

Stock Price Performance: During May 31, 2011 to July 27, 2011, the stock price had fallen $1.45 (-8.1%) from $17.90 to $16.45. The stock price saw one of its best stretches over the last year between October 27, 2010 and November 8, 2010 when shares rose for nine-straight days, rising 18.7% (+$1.92) over that span. It saw one of its worst periods between June 2, 2011 and June 13, 2011 when shares fell for eight-straight days, falling 10.9% (-$1.98) over that span. Shares are up $3.82 (+30.2%) year to date.

(Source: Xignite Financials)

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