Leap Wireless International Inc.
) - one of the low-cost wireless service providers in the U.S. -
is set to release its first-quarter 2013 results after the
closing bell on Apr 30, 2013.
In the last quarter, the company delivered a 47.02% earnings
surprise. Let's see how things are shaping up for this
Factors to be Considered this Quarter
Leap Wireless launched an array of attractive service plans
for its customers. The company made its popular Muve Music
service available to all Android-based smartphones at no extra
cost and without any contract terms, hence improving its
subscriber base. In addition, the company also launched a new
handset financing program for the customers, which will
facilitate them to buy high-end smartphones in installments.
On the downside, persistent loss of subscribers coupled with
lack of spectrum and a highly leveraged balance sheet may act as
headwinds for Leap Wirelessin the forthcoming years.
Our proven model does not conclusively show that Leap Wireless
is likely to beat the Zacks Consensus Estimate this quarter. This
is because a stock needs to have both a positive Expected
Surprise Prediction (ESP) (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this
to happen. Unfortunately, this is not the case here as elaborated
This is because the Most Accurate estimate is a loss of $1.65,
above the Zacks Consensus Estimate of a loss of $1.21. This leads
to an ESP of -36.36% for Leap Wireless.
Zacks Rank #3 (Hold):
Leap Wireless's Zacks Rank #3, decreases the predictive power of
We caution investors against the stock going into the earnings
announcement, as a Zacks earnings ESP of -36.36% combined with a
Zacks Rank # 3 lowers the possibility of an earnings
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
Research In Motion Limited
) has an Earnings ESP of +100.00% and carries a Zacks Rank #2
) has an Earnings ESP of +4.08% and carries a Zacks Rank #3
DISH Network Corp. (
has an Earnings ESP of +1.89% and carries a Zacks Rank #3
RESEARCH IN MOT (BBRY): Free Stock Analysis
COMCAST CORP A (CMCSA): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
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