Metro PCS Down 30 Percent on Weak Subscriber Numbers
Shares of pre-paid cellular operator Metro PCS (PCS), which offers phone plans in the $30 to $50 neighborhood, are plunging today, falling $3.74, or 30 percent, to $8.95, after the company missed Q2 EPS estimates by quite a bit on revenue that was in line. The company’s churn, or rate of customer defections, jumped.
Q2 revenue rose 27 percent, the company said, to $859.6 million, in line with the average $861.7 million estimate, while profit per share of 7 cents was half what analysts were looking for. The company reiterated an outlook for net subscriber additions this year of 1.4 million to 1.7 million.