Omnipoint (Nasdaq: OMPT) cut losses faster than Wall Street expected in the third quarter.
After market close Tuesday, the wireless communications provider reported a third quarter net loss of $134.2 million, or $2.50 per share. First Call's survey of a dozen analysts predicted a loss of $3.28 per share.
"I am pleased with Omnipoint's continued strong performance during the third quarter," said Douglas G. Smith, chairman, president and CEO of Omnipoint.
Third quarter revenue increased to $110 million, a 22 percent improvement sequentially. Most of Omnipoint's revenue came from its PCS business, which gained 23 percent from the second quarter as the company added 104,000 subscribers, bringing the total to 698,000 at the end of the third quarter.
Average revenue per customer increased to more than $50, based on an average of 629,000 subscribers for the quarter, said George Schmitt, president of the Omnipoint Communications division. Average minutes of use increased, he added.
Shares of Omnipoint retreated 2 to 80 1/4 in Tuesday's regular trading prior to the quarterly report. Among 21 analysts surveyed by Zack's Investment Research, 10 rate Omnipoint a "hold", six maintain the equivalent of "moderate buy" ratings, four recommend it as a "strong buy", and one has a "strong sell" advisory on the stock.>