JP Morgan Comments On MetroPCS Lackluster Quarter

JP Morgan has published a research report on MetroPCS PCS after the company reported a weaker than expected quarter. In the report, JP Morgan writes, "Metro's 2Q11 net adds came at 199k vs. our 225k and consensus 254k (SA) – we believe buy-side expectations were higher. Upgrade rate looks to be roughly 10% vs. our 13.5% estimate for the quarter (we expect the real number on the call), and down sequentially from 16% in 1Q. Churn of 3.9%, up 80 b.p. q/q and higher than our 3.6% (we modeled +50 b.p. - in-line with 2010) demonstrates that this continues to be a seasonal business, which had not been captured in consensus churn." JP Morgan maintains its Neutral rating on MetroPCS, which closed yesterday at $16.18.