Leap Wireless International Third Quarter Earnings Sneak Peek

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Leap Wireless International, Inc. (NASDAQ:LEAP) will unveil its latest earnings on Wednesday, November 7, 2012. Leap Wireless International is a wireless communications carrier that offers digital wireless services in the United States under the Cricket brand.

Leap Wireless International, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 73 cents per share, a narrower loss from the year-earlier quarter net loss of 90 cents. During the past three months, the average estimate has moved down from a loss of 70 cents. Between one and three months ago, the average estimate moved down. It has risen from a loss of 76 cents during the last month.

Past Earnings Performance: The company has missed estimates in the last two quarters. In the second quarter, it missed the mark by 2 cents as a result of reporting a loss of 54 cents against an estimate of net loss of 52 cents per share. In the first quarter, the company fell short of forecasts by 27 cents.

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A Look Back: In the second quarter, the company’s loss narrowed to a loss of $41.6 million (54 cents a share) from a loss of $65.2 million (85 cents) a year earlier, but missed analyst expectations. Revenue rose 3.4% to $786.8 million from $760.5 million.

Stock Price Performance: Between August 8, 2012 and November 1, 2012, the stock price rose 85 cents (19.2%), from $4.42 to $5.27. The stock price saw one of its best stretches over the last year between August 13, 2012 and August 21, 2012, when shares rose for seven straight days, increasing 23.8% (+$1.24) over that span. It saw one of its worst periods between July 13, 2012 and July 25, 2012 when shares fell for nine straight days, dropping 22.3% (-$1.45) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.37 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 5.9% in the first quarter before climbing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 15 of 19 analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts predict a rise of 1.5% in revenue from the year-earlier quarter to $774.6 million.

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

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