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S&P 500 (NYSE:SPY) component MetroPCS Communications Inc (NYSE:PCS) will unveil its latest earnings on Tuesday, October 30, 2012. 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 analyst estimate is for profit of 26 cents per share, a rise of 36.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 16 cents. Between one and three months ago, the average estimate moved up. It has risen from 24 cents during the last month. Analysts are projecting profit to rise by 2.4% versus last year to 82 cents.
Last quarter, the company came in at net income of 41 cents per share against a mean estimate of profit of 22 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 11 cents.
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A Look Back: In the second quarter, profit rose 76.5% to $148.8 million (41 cents a share) from $84.3 million (23 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.9% to $1.28 billion from $1.21 billion.
Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose $2.02 (23.1%), from $8.76 to $10.78. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 14.6% (-$1.28) over that span.
Wall St. Revenue Expectations: On average, analysts predict $1.25 billion in revenue this quarter, a rise of 3.3% from the year-ago quarter. Analysts are forecasting total revenue of $5.11 billion for the year, a rise of 5.4% from last year’s revenue of $4.85 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 18.1% in the third quarter of the last fiscal year, 16.2% in the fourth quarter of the last fiscal year and 6.9% in the first quarter before increasing again in the second quarter.
There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of more than twofold for the last four quarters.
Analyst Ratings: There are mostly holds on the stock with 14 of 20 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.9 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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