Leap Wireless reports lower than expected Q2 earnings, stock falls 10%
Leap had a second quarter loss of $41.6 million or 54 cents a share on revenue of $786.8 million. Wall Street was looking for a loss of 50 cents a share on revenue of $836.8 million. Last year, the company lost 85 cents a share or $58.4 million on $836.8 million in revenue. CFO Hutcheson said the results were "softer" than expected.
Leap CFO Jerry Elliott said in a conference call that the value of the company's wireless network is $3 billion, seven times more than the company's stock market value. The trick is getting the value of those assets unlocked. Sometimes that takes a takeover bid or another catalyst to force management to realize the hidden value. Back in February, rumors circulated that AT&T would buy Leap followed the next month by speculation that the company's suitor would be fellow pre-paid carrier MetroPCS. Collins Stewart LLC said a deal with AT&T was "highly unlikely" while a deal with MetroPCS would be "fraught with challenges" according to Sanford C. Bernstein & Co.
source: Marketwatch via FierceWireless
Leap Wireless Q2 slideshow Fullscreen
More popular slideshows
10 great Android widgets you should try
09 Apr 2013, 08:08
Samsung Galaxy S4: 10 exclusive or little-known features review
05 Apr 2013, 07:17
Best Android phones to get this spring
17 Apr 2013, 09:48
5 smartphone apps banned by... Google
16 Apr 2013, 07:24
Samsung Galaxy S 4 hands-on
14 Mar 2013, 18:32
Google+ surpasses Twitter to take number 2 social network after Facebook
28 Jan 2013, 00:58
1. zackh121556 posted on 06 Aug 2012, 23:28 1 0
Ouch...and with the Iphone lol. should have got the GSIII
2. Allen3697 posted on 07 Aug 2012, 00:25 0 0
I'm so glad that Cricket (my company) decided to waste a billion dollars on a phone that is barely able to run on Cricket's bad network. I can't wait to jump ship....
3. pikapowerize (banned) posted on 07 Aug 2012, 03:44 0 0
oh come on iPhone haters... carriers will choose iPhone bacause its an iPhone and people want one.... this is business we are talking about...
i mean s3 is great but there's people who dont like samsung brand as a phone (like me i just like their appliance)