Zacks Analyst Blog Highlights: MetroPCS Communications Inc., Leap Wireless International Inc., Sprint Nextel, America Movil S.A. and Dean Foods

For Immediate Release

Chicago, IL – August 7, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: MetroPCS Communications Inc. (PCS - Analyst Report), Leap Wireless International Inc. (LEAP - Snapshot Report), Sprint Nextel (S - Analyst Report), America Movil S.A. (AMX - Analyst Report) and Dean Foods (DF - Analyst Report).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

MetroPCS Underperforms

MetroPCS Communications Inc.’s (PCS - Analyst Report) second quarter results missed Zacks Estimates. Total revenues of $859.6 million were an improvement of 26.6%, compared to the same quarter of the previous year but below Zacks Estimates of $862 million. On a GAAP basis, net income in the second quarter was $26.2 million, a decrease of 48% year over year. EPS for the quarter was $0.07, compared to $0.14 in the prior-year quarter. This was also below the Zacks Consensus Estimate of $0.12.

Operating expense, in the second quarter was $743.8 million, up 37% year over year. Income from operation, in the same quarter was $115.8 million, down 14.6% year over year. Segment wise, Service revenue was $766.9 million in the second quarter, up 28% year over year. Equipment revenue was $92.8 million in the same quarter, up 15.6% year over year. Consolidated adjusted EBITDA was $234 million in the reported quarter, up 11% year over year.

Consolidated net subscriber addition during the second quarter was 205,585, compared to 183,530 in the year-ago quarter and 684,000 in the previous quarter. Out of 205,585 net additional subscribers, 12,645 were added in the core markets and the rest 192,940 were added in the Northeast markets. Consolidated penetration of covered POPs in the quarter was 7.2%, compared to 8.1% in the prior-year quarter.

The low-cost prepaid wireless communications market in the U.S. is highly competitive. Besides MetroPCS, other formidable players in this sector include Leap Wireless International Inc. (LEAP - Snapshot Report), Boost Mobile, a division of Sprint Nextel (S - Analyst Report), and Tracfone Wireless, a division of America Movil S.A. (AMX - Analyst Report). Almost all the competitors have either reduced their offer price or added several innovative features into their existing service plans. During the quarter, monthly average churn rate, a measure of customer attrition rose significantly for MetroPCS. Churn rate in the quarter was 5.8%, significantly higher, compared to just 4.5% in the prior year quarter. As a result, Average Revenue per User (ARPU) in the quarter was $40.52 compared to $42.05 in the year-ago quarter.

Dean Foods Beats Marginally

Following the earnings release, Dean Foods (DF - Analyst Report) management raised its guidance for fiscal 2009. Annual earnings are now expected to be at least $1.60 per share, roughly 20% above year-ago levels. Previous guidance was $1.55 per share.

Although commodity costs continue to be favorable, management is concerned about the continued competitive activity in fluid milk operations and is cautious regarding diminished commodity favorability in the future. Earnings for the third quarter are expected to be $0.30 per share.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com