MetroPCS Rises as Quarterly Profit Beats Estimates
February 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.
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