Leap Wireless (NASDAQ:LEAP) Tumbles to Record Low after Losing More Subscribers – LEAP, TDS, S, VZ

The San Diego based Leap Wireless International, Inc (NASDAQ:LEAP), which sells the Cricket prepaid mobile-phone service, fell to record low in 4 months after losing more subscribers than forecasted and lowering back its investment schemes.

Leap Wireless lost 337,000 customers in fiscal Q4, worse than the 175,000 median forecasts of 3 analysts polled by Bloomberg.

The carrier’s capital spending will tumble almost 37% to $275 million current year as it looks partnerships to offer faster download speeds for Smartphone rather than expanding its own network in some regions.

Shares of Leap tumbled 8.3% to settle at $5.61 in New York and marked the record drop since Oct 3.

Net loss in the fiscal fourth-quarter narrowed to $74.3 million or 96 cents per share, from $84.4 million or $1.10 per share in previous year. Sales plunged 1.5% to $756 million.

Shifting reader’s focus to broader market, let us consider market performance of other stocks that significantly affect same sector. Telephone & Data Systems, Inc. (NYSE:TDS) fell -0.46% to settle at $25.72, Sprint Nextel Corporation (NYSE:S) moved down -1.86% to end at $5.79 while Verizon Communications Inc. (NYSE:VZ) jumped +0.94% to finish at $44.92 on Wednesday.

Leap Wireless International, Inc. (NASDAQ:LEAP) last session’s volume of 4.98 million shares was higher than its average volume of 2.09 million shares. The stock after opening at $6.12 hit high price of $6.24 and then closed at $5.61 by scoring -8.33%.

LEAP generated revenue of $3.15 billion in the previous twelve months and earned -$199.39 million. The Company showed a negative -6.09% in the net profit margin as well as in its operating margin which remained at 2.97%. Company’s annual sales growth for the past five years was 21.35%.

The LEAP’s past twelve months’ price to sales ratio was 0.14 and price to cash ratio remained 0.71. As far as the returns are concerned, LEAP’s return on equity was recorded as -33.29% and return on investment decreased -4.45% while its return on asset stayed at -3.85%.

The stock showed weekly downbeat performance of -10.10% which was maintained for the month at -1.41%. Likewise the negative performance for the quarter was recorded as -6.03% and for the year was -41.68% while the YTD performance remained at -15.64%.

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