NEW YORK ( TheStreet) -- MetroPCS Communications (NYSE: PCS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • PCS's revenue growth has slightly outpaced the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 16.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • METROPCS COMMUNICATIONS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, METROPCS COMMUNICATIONS INC increased its bottom line by earning $0.82 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.82).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Wireless Telecommunication Services industry. The net income increased by 573.5% when compared to the same quarter one year prior, rising from $13.55 million to $91.27 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, METROPCS COMMUNICATIONS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • 41.20% is the gross profit margin for METROPCS COMMUNICATIONS INC which we consider to be strong. Regardless of PCS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PCS's net profit margin of 7.40% is significantly lower than the same period one year prior.
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MetroPCS Communications, Inc., a wireless telecommunications carrier, together with its subsidiaries, provides wireless broadband mobile services in the United States. The company has a P/E ratio of 14.6, above the average telecommunications industry P/E ratio of 14 and below the S&P 500 P/E ratio of 17.7. MetroPCS has a market cap of $3.1 billion and is part of the technology sector and telecommunications industry. Shares are up 36.3% year to date as of the close of trading on Tuesday.

You can view the full MetroPCS Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

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