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
1. zackh121556 (Posts: 98; Member since: 01 Feb 2012)
Ouch...and with the Iphone lol. should have got the GSIII
2. Allen3697 (Posts: 86; Member since: 26 Mar 2012)
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) (Posts: 1869; Member since: 03 May 2012)
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)