Leap shares jump after 1Q revenue beats expectations

NEW YORK - Shares of Leap Wireless International Inc. jumped Friday after the low-cost wireless carrier reported solid first-quarter results and added more subscribers than analysts had expected.

The company narrowed its loss and posted revenue above Wall Street's expectations.

Goldman Sachs analyst Scott Malat said Leap's net customer additions of 230,000 surpassed his estimate of 208,000 and implies a "relatively strong March," since the company reported it added 137,000 subscribers in January and February combined.

The analyst, who called the subscriber growth impressive, rates Leap "Neutral." Leap provides unlimited wireless service for a flat fee, with no required contracts or credit checks.

Banc of America Securities analyst David W. Barden kept a "Neutral" rating on Leap and said the quarter's service revenue was below his expectations. Subscriber additions, however, were higher than he estimated.

Shares of San Diego-based Leap rose $4.38, or 8.7 percent, to $54.48. In the past 52 weeks, the stock has traded between $29.87 and $99.04.

Shares of rival MetroPCS Communications Inc., meanwhile, rose 62 cents, or 3.3 percent, to $19.62. The stock has traded between $13.68 and $40.87 in the past year.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.