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Sprint (S) Q4 Loss Wider, Revenues Top, Stock Down
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Sprint Corp. (S - Free Report) a leading telecom operator in the U.S. providing wireless and wireline services to individuals, business enterprises and government agencies.
Sprint is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for S in this report.
Nevertheless, Sprint has been losing customers of late and is trying all means to check churn and fend off competition. However, in this regard, the company has been continually making efforts to lure customers from rival carriers such as AT&T and Verizon by offering attractive promotional plans and discounts. This in turn has led to high cash burn and heavy losses for the company. The company has a debt-laden balance sheet, negative operating cash flow and has been witnessing losses since 2007.
Sprint currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of a mere 0.30% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Sprint incurs loss in Q4 of fiscal 2016 (ended Mar 31, 2017). However, net loss was wider than the Zacks Consensus Estimate. Our consensus estimate called for a net loss of 4 cents per share and the company reported net loss was 7 cents per share. Investors should note that these figures take out stock option expenses.
Revenue: Sprint reported total revenue of $8,539 million which surpassed our estimate by a substantial $573 million.
Key States to Note: In the reported quarter, Sprint lost a net 118,000 retail postpaid connections. At fourth-quarter 2016 end, the company had 31.576 million retail postpaid connections, up 2% year over year. Retail postpaid average revenue per user (ARPU) decreased 8.4% to $47.34 per month. In the reported quarter, Sprint gained 180,000 net prepaid connections and 125,000 net wholesale connections.
Stock Price: At the time of writing, the stock price of Sprint was down nearly 0.77% in the per-market trade on NYSE. Clearly the initial reaction to the release is negative. We believe that wider-than-expected loss and net loss of postpaid subscribers are the primary reasons for the initial negative stock price movement.
Check back later for our full write up on this Sprint earnings report later!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Sprint (S) Q4 Loss Wider, Revenues Top, Stock Down
Sprint Corp. (S - Free Report) a leading telecom operator in the U.S. providing wireless and wireline services to individuals, business enterprises and government agencies.
Sprint is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings—with the most up-to-date information possible—is a pretty good indicator of some favorable trends underneath the surface for S in this report.
Nevertheless, Sprint has been losing customers of late and is trying all means to check churn and fend off competition. However, in this regard, the company has been continually making efforts to lure customers from rival carriers such as AT&T and Verizon by offering attractive promotional plans and discounts. This in turn has led to high cash burn and heavy losses for the company. The company has a debt-laden balance sheet, negative operating cash flow and has been witnessing losses since 2007.
Sprint currently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of a mere 0.30% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Sprint incurs loss in Q4 of fiscal 2016 (ended Mar 31, 2017). However, net loss was wider than the Zacks Consensus Estimate. Our consensus estimate called for a net loss of 4 cents per share and the company reported net loss was 7 cents per share. Investors should note that these figures take out stock option expenses.
Revenue: Sprint reported total revenue of $8,539 million which surpassed our estimate by a substantial $573 million.
Key States to Note: In the reported quarter, Sprint lost a net 118,000 retail postpaid connections. At fourth-quarter 2016 end, the company had 31.576 million retail postpaid connections, up 2% year over year. Retail postpaid average revenue per user (ARPU) decreased 8.4% to $47.34 per month. In the reported quarter, Sprint gained 180,000 net prepaid connections and 125,000 net wholesale connections.
Stock Price: At the time of writing, the stock price of Sprint was down nearly 0.77% in the per-market trade on NYSE. Clearly the initial reaction to the release is negative. We believe that wider-than-expected loss and net loss of postpaid subscribers are the primary reasons for the initial negative stock price movement.
Sprint Corporation Price and EPS Surprise
Sprint Corporation Price and EPS Surprise | Sprint Corporation Quote
Check back later for our full write up on this Sprint earnings report later!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>