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Will Damage Recovery from Time Warner Cable Help Sprint (S)?
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U.S. national wireless carrier Sprint Corp. (S - Free Report) disappointed with its fiscal third-quarter 2016 financial results, wherein adjusted net loss per share was wider than the Zacks Consensus Estimate. Naturally, the company desperately needed some good news to win back its investors’ favor.
To this end, the trick may be done by a recent Bloomberg report that Sprint has received $139.8 million as a damage recovery payment from Time Warner Cable, in relation to breaking norms for digital voice telephone services. In 2011, Sprint had filed a lawsuit against Time Warner Cable and other cable television companies for breaking the patents and using Sprint’s connections and services illegally, without permission.
American cable television company and subsidiary of Charter Communications Inc. (CHTR - Free Report) , Time Warner Cable was found guilty of intentionally violating the patents. The jury found that Time Warner Cable broke five patents for Voice-over-Internet Protocol. This paved the way for raising the award by three times the initial amount set by the jury. Such lawsuits, along with their related fines act as major dampeners for the company’s financials and long-term growth. Sometimes, these charges also affect the company’s credit ratings going forward. We hope that Charter Communications will soon recover from the loss it had to face from such fines. We further believe that the cable company will remain aware of all its activities from now.
Reports state that another similar allegation by Sprint on Comcast Corporation (CMCSA - Free Report) is expected to begin next week before the same judge in Kansas City, KS.
Recent Unlimited Data Plan War
Pertaining to the recent unlimited data plan war, we saw all the major four wireless telecommunications companies – AT&T Inc. (T - Free Report) , Sprint, T-Mobile US (TMUS - Free Report) and Verizon communications participating. On comparing, we found that Sprint’s unlimited data plan starting at $50 per months was cheaper than AT&T’s $100 per month plan, T-Mobile US’ unlimited plan starting at $70 per month for a single lineand Verizon Communications’ $80 a month.
We look forward to seeing which among these four carriers’ unlimited offerings gain popularity among customers and succeeds to lure the maximum number of wireless subscribers Notably, over the past six months, Sprint returned 32.58%, while the Zacks categorized Wireless National industry gained 1.60%.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Will Damage Recovery from Time Warner Cable Help Sprint (S)?
U.S. national wireless carrier Sprint Corp. (S - Free Report) disappointed with its fiscal third-quarter 2016 financial results, wherein adjusted net loss per share was wider than the Zacks Consensus Estimate. Naturally, the company desperately needed some good news to win back its investors’ favor.
To this end, the trick may be done by a recent Bloomberg report that Sprint has received $139.8 million as a damage recovery payment from Time Warner Cable, in relation to breaking norms for digital voice telephone services. In 2011, Sprint had filed a lawsuit against Time Warner Cable and other cable television companies for breaking the patents and using Sprint’s connections and services illegally, without permission.
American cable television company and subsidiary of Charter Communications Inc. (CHTR - Free Report) , Time Warner Cable was found guilty of intentionally violating the patents. The jury found that Time Warner Cable broke five patents for Voice-over-Internet Protocol. This paved the way for raising the award by three times the initial amount set by the jury. Such lawsuits, along with their related fines act as major dampeners for the company’s financials and long-term growth. Sometimes, these charges also affect the company’s credit ratings going forward. We hope that Charter Communications will soon recover from the loss it had to face from such fines. We further believe that the cable company will remain aware of all its activities from now.
Reports state that another similar allegation by Sprint on Comcast Corporation (CMCSA - Free Report) is expected to begin next week before the same judge in Kansas City, KS.
Recent Unlimited Data Plan War
Pertaining to the recent unlimited data plan war, we saw all the major four wireless telecommunications companies – AT&T Inc. (T - Free Report) , Sprint, T-Mobile US (TMUS - Free Report) and Verizon communications participating. On comparing, we found that Sprint’s unlimited data plan starting at $50 per months was cheaper than AT&T’s $100 per month plan, T-Mobile US’ unlimited plan starting at $70 per month for a single lineand Verizon Communications’ $80 a month.
We look forward to seeing which among these four carriers’ unlimited offerings gain popularity among customers and succeeds to lure the maximum number of wireless subscribers Notably, over the past six months, Sprint returned 32.58%, while the Zacks categorized Wireless National industry gained 1.60%.
Sprint currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>