MetroPCS Reports 1Q Trends Key For Stock Performance

According to Oppenheimer, MetroPCS PCS has reported that 1Q trends will be key for stock performance. Oppenheimer said that MetroPCS will report 4Q results tomorrow before the market opens. “We estimate that PCS will report 4Q EPS of -$0.05 (below consensus of $0.07, which we suspect for the most part does not fully incorporate one-time costs), accounting for one-time debt extinguishment charges. On a recurring basis, we are forecasting EPS of $0.17. Like LEAP, PCS pre-released customer volumes in early 2011 (which were below consensus). We are forecasting ARPU of nearly $39.70 in 4Q, representing a 2.5% YoY decline as the lower pricing effected in 2010 takes its toll (however, based on our estimates, ARPU is holding out better for PCS vis-à-vis Leap).” MetroPCS closed yesterday at $13.08.