Leap Jumps as Wireless Discounter Tops Estimates

| About: AT&T Inc. (T)

Discount wireless company Leap Wireless International, Inc. (LEAP) saw its shares climb nearly 10% in after-hours action Thursday following better-than-expected earnings results. Despite a net loss of $43.3 million, or $0.64/share, versus a year-ago’s loss of less than $1 million, most of the per-share loss was the result of increases in net interest and income tax expenses. On an adjusted basis, EPS was -$0.09; analysts were expecting adjusted EPS of -$0.15. Revenue was robust climbing 40% to $409.7 million, versus consensus estimates of $405.6 million. Leap also topped its service revenue growth projections from a month ago, with a 47% increase to $354.5 million Y/Y, while projected monthly revenue-per-user will climb to $46 in Q4 from the recent quarter’s $44.51. The company did miss its subscriber growth projection of 40,000, adding just 36,484 new customers in the period. Leap shares have fallen from nearly $80 in early November to just below $30, as discount wireless competitor MetroPCS withdrew its bid for the company (full story).

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