MetroPCS Communications Inc. Third Quarter Earnings on Deck

S&P 500 (NYSE:SPY) component MetroPCS Communications, Inc. (NYSE:PCS) will unveil its latest earnings on Tuesday, November 1, 2011. MetroPCS Communications 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 profit of 23 cents per share, a rise of 4.5% 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 29 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 18.6% versus last year to 83 cents.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of 24 cents per share against an estimate of profit of 28 cents per share. The quarter before that, it missed forecasts by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.22 billion in revenue this quarter, a rise of 19.6% from the year ago quarter. Analysts are forecasting total revenue of $4.87 billion for the year, a rise of 19.7% from last year’s revenue of $4.07 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, one rating it as a sell and 11 rating it as a hold.

A Look Back: In the second quarter, profit rose 5.5% to $84.3 million (23 cents a share) from $79.9 million (22 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 19.4% to $1.21 billion from $1.01 billion.

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 17.8%, with the biggest boost coming in the first quarter when revenue rose 23.1% from the year earlier quarter.

The company has seen net income rise in two straight quarters. In the first quarter, profit rose more than twofold.

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 Price Performance: During August 30, 2011 to October 26, 2011, the stock price had fallen $1.56 (-13.9%) from $11.25 to $9.69. 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 July 22, 2011 and August 2, 2011 when shares fell for eight-straight days, falling 40.5% (-$6.97) over that span. Shares are down $2.94 (-23.3%) year to date.

(Source: Xignite Financials)

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