Bloomberg News

MetroPCS Rises as Quarterly Profit Beats Estimates: Dallas Mover

February 24, 2012

Feb. 23 (Bloomberg) -- MetroPCS Communications Inc., the pay-as-you-go U.S. wireless carrier, rose the most in more than three months after reporting fourth-quarter profit that beat analysts’ estimates.

Net income jumped more than six-fold 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 phone subsidies 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 11 percent to $11.44 at 9:33 a.m. in New York, the biggest intraday gain since Nov. 2.

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

--Editors: Cecile Daurat, Jeffrey Tannenbaum

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


Silicon Valley State of Mind
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus