Newsroom

MetroPCS Rises as Quarterly Profit Beats Estimates

Feb 23, 2012

By Alexander Yablon | Bloomberg 

 
MetroPCS Communications Inc. (PCS), the pay-as-you-go U.S. wireless carrier, rose the most in more than three years after reporting fourth-quarter profit that beat analysts’ estimates.
 

Net income jumped more than sixfold to $91 million, or 25 cents a share, from $14 million, or 4 cents, a year earlier, the Richardson, Texas-based carrier said in a statement. Analysts projected 16 cents, the average of estimates compiled by Bloomberg.

 

MetroPCS curbed phonesubsidies and marketing costs, leading to better-than-expected earnings, said James Ratcliffe, an analyst with Barclays Capital in New York. The cost of acquiring new customers fell to $165.79 from $193.95 in the third quarter. That was lower than the $200.20 projected by Ratcliffe, who rates the shares “neutral.”

 

MetroPCS increased 14 percent to $11.70 at the close in New York, the biggest one-gain since November 2008. The stock has fallen 8.3 percent in the past 12 months.

 

Earnings before interest, taxes, depreciation and amortization rose 15 percent to $362 million, topping the average estimate of $319.6 million.

 

To contact the reporter on this story: Alexander Yablon in New York at ayablon@bloomberg.net

 

To contact the editor responsible for this story: Ville Heiskanen at vheiskanen@bloomberg.net

 
To read this story on the Bloomberg website, please click here

Related Articles

Arapaho Center Station Development On Hold

The City of Richardson’s redevelopment efforts at the Arapaho Center Station property are being placed on hold due to current market conditions and ongoing economic uncertainty. While the City remains committed to the long-term vision for...

Andrew To Relocate And Expand Richardson-Based HQ

Company will continue to house high value roles supporting innovation, leadership, and critical business functions, with opportunities for workforce expansion. (Richardson, TX) – The City of Richardson is pleased to announce ANDREW will relocate...