Back to top

Analyst Blog

Zacks Equity Research

PCS Expands 4G Smartphone Portfolio

T VZ

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

MetroPCS Communications Inc. – one of the leading prepaid operators in the U.S. market – launched 4GLTE-based Huawei Premia 4G smartphones at an affordable price of only $149.

The new handset features 4.0-inch Corning Gorilla Glass screen display with 5.0 megapixel auto-focus camera.  The new device runs on Google Inc.’s widely used Android 4.0 platform and is also integrated with 1.5GHz dual-core processor and 1GB RAM, thereby delivering faster multi-tasking facilities.

The new device comes with a $40 per month 4GLTE prepaid plan that offers unlimited talk, text and data. Moreover, the users can avail of MetroPCS’s popular Rhapsody unlimited on-demand music at $5 per month.

MetroPCS is continuously expanding its 4GLTE smartphone portfolio to drive its 4GLTE service growth. The handsets are not subject to annual contracts. The U.S. 4GLTE market is mainly dominated by big telecom players like Verizon Communication Inc. (VZ - Analyst Report) and AT&T Inc. (T - Analyst Report), who offer high-end smartphones at a minimum 2-year service contract.

So, by offering no-contract handsets with affordable service plans will create better opportunity for MetroPCS to drive its device revenue. This will also trigger subscriber growth as most customers are not keen on entering a long-term contract.

In the recently concluded quarter, earnings per share of 9 cents, failed to meet the Zacks Consensus Estimate of 13 cents, decreasing 43.8% from 25 cents in the year-ago quarter.

Total revenue climbed 3.7% year over year to $1,284.3 million in the fourth quarter, beating our expectation of $1,274.0 million. The outperformance was supported by a solid contribution from the equipment segment.

MetroPCS has a Zacks Rank #3 (Hold).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%