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Leap Wireless International Inc
MetroPCS Communications Inc. (PCS), a pay- as-you-go wireless carrier, advanced the most since its initial public offering more than five years ago after reporting quarterly profit that beat analysts’ estimates amid a decrease in promotional costs.
MetroPCS surged (PCS) 37 percent to $8.59 at the close in New York, for the biggest intraday gain since its IPO in April 2007. The shares had declined 28 percent this year through yesterday. Leap Wireless International Inc. (LEAP), a rival pay-as-you-go wireless-service provider, jumped 12 percent to $5.64.
Second-quarter net income rose 76 percent to $148.8 million, or 41 cents a share, from $84.3 million, or 23 cents, a year earlier, the Richardson, Texas-based company said today in a statement. Analysts projected 22 cents, the average of estimates (PCS) compiled by Bloomberg.
MetroPCS, led by Chairman and Chief Executive Officer Roger Linquist, is cutting sales-promotion costs amid a slowdown in new customers. The company shed 186,000 users in the quarter, its first quarterly customer lost, compared with a gain of 199,000 users a year ago.
Jennifer Fritzsche, an analyst at Well Fargo Securities, projected a loss of 174,000 customers in the quarter. Phil Cusick, an analyst at JPMorgan Chase & Co., called for a loss of 250,000 users.
Adjusted earnings before interest, taxes, depreciation and amortization was $477 million, better than the $363 million estimate compiled by Bloomberg. Sales rose 6 percent to $1.28 billion, beating the average of analysts’ estimates (PCS) of $1.25 billion, according to data compiled by Bloomberg.
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