Back to top

Analyst Blog

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.

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 announcement.

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.

Earnings Whispers

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 below.

Zacks ESP: 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 ESP.

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 surprise.

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 (BBRY - Analyst Report) has an Earnings ESP of +100.00% and carries a Zacks Rank #2 (Buy).

Comcast Corporation (CMCSA - Analyst Report) has an Earnings ESP of +4.08% and carries a Zacks Rank #3 (Hold).

DISH Network Corp. (DISH - Analyst Report) has an Earnings ESP of +1.89% and carries 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 GROUP DXYN 15.84 +7.90%
BOFL HOLDING 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%