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Sprint (S) Incurs Q1 Loss as Expected, Beats on Revenues
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Sprint Corporation (S - Free Report) reported healthy first-quarter fiscal 2019 financial results, wherein the top line increased year over year and surpassed the Zacks Consensus Estimate.
Net Loss
For the June quarter, net loss was $111 million or loss of 3 cents per share against net income of $176 million or 4 cents per share in the year-ago quarter. The sharp decline was primarily due to higher net operating expenses. The bottom line matched the Zacks Consensus Estimate of loss of 3 cents.
Sprint Corporation Price, Consensus and EPS Surprise
Quarterly total net operating revenues increased to $8,142 million from $8,125 million in the year-ago quarter mainly driven by higher equipment rentals. The top line surpassed the Zacks Consensus Estimate of $8,024 million. Overall service revenues were $5,563 million, down from $5,740 million in the year-ago quarter, while equipment sales totaled $1,220 million, up from $1,173 million. Equipment rentals increased to $1,359 million from $1,212 million.
Segment Results
Total net wireless operating revenues were $7,901 million compared with $7,845 million in the year-ago quarter, primarily due to higher equipment sales and rentals. Total service revenues declined to $5,322 million from $5,460 million. Postpaid revenues totaled $4,199 million and prepaid revenues were $843 million. Wholesale, affiliate and other revenues summed $280 million. The segment’s operating income was $590 million compared with $1,002 million in the year-ago quarter. Adjusted EBITDA was $3,037 million compared with $3,318 million in the prior-year quarter for respective margins of 57.1% and 60.8%.
Net operating wireline revenues were $307 million compared with $338 million a year ago. Operating loss for the segment was $54 million compared with operating loss of $96 million in the year-ago quarter.
Other Details
Total net operating expenses increased to $7,687 million from $7,310 million. Consequently, operating income for the reported quarter was $455 million compared with $815 million a year ago. Overall adjusted EBITDA was $3,042 million compared with $3,280 million and adjusted EBITDA margin declined to 54.7% from 57.1%.
Cash Flow & Liquidity
During the first quarter of fiscal 2019, Sprint generated $2,244 million of net cash from operating activities compared with $2,430 million in the year-ago quarter. As of Jun 30, 2019, the wireless carrier had $4,869 million in cash and equivalents with $35,073 million of long-term debt and finance lease obligations.
Zacks Rank & Stocks to Consider
Sprint currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Harmonic Inc. (HLIT - Free Report) , Comtech Telecommunications Corp. (CMTL - Free Report) and Nokia Corp. (NOK - Free Report) . While Harmonic and Comtech sport a Zacks Rank #1 (Strong Buy), Nokia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Harmonic surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 119.9%.
Comtech surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 216.7%.
Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.
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Sprint (S) Incurs Q1 Loss as Expected, Beats on Revenues
Sprint Corporation (S - Free Report) reported healthy first-quarter fiscal 2019 financial results, wherein the top line increased year over year and surpassed the Zacks Consensus Estimate.
Net Loss
For the June quarter, net loss was $111 million or loss of 3 cents per share against net income of $176 million or 4 cents per share in the year-ago quarter. The sharp decline was primarily due to higher net operating expenses. The bottom line matched the Zacks Consensus Estimate of loss of 3 cents.
Sprint Corporation Price, Consensus and EPS Surprise
Sprint Corporation price-consensus-eps-surprise-chart | Sprint Corporation Quote
Revenues
Quarterly total net operating revenues increased to $8,142 million from $8,125 million in the year-ago quarter mainly driven by higher equipment rentals. The top line surpassed the Zacks Consensus Estimate of $8,024 million. Overall service revenues were $5,563 million, down from $5,740 million in the year-ago quarter, while equipment sales totaled $1,220 million, up from $1,173 million. Equipment rentals increased to $1,359 million from $1,212 million.
Segment Results
Total net wireless operating revenues were $7,901 million compared with $7,845 million in the year-ago quarter, primarily due to higher equipment sales and rentals. Total service revenues declined to $5,322 million from $5,460 million. Postpaid revenues totaled $4,199 million and prepaid revenues were $843 million. Wholesale, affiliate and other revenues summed $280 million. The segment’s operating income was $590 million compared with $1,002 million in the year-ago quarter. Adjusted EBITDA was $3,037 million compared with $3,318 million in the prior-year quarter for respective margins of 57.1% and 60.8%.
Net operating wireline revenues were $307 million compared with $338 million a year ago. Operating loss for the segment was $54 million compared with operating loss of $96 million in the year-ago quarter.
Other Details
Total net operating expenses increased to $7,687 million from $7,310 million. Consequently, operating income for the reported quarter was $455 million compared with $815 million a year ago. Overall adjusted EBITDA was $3,042 million compared with $3,280 million and adjusted EBITDA margin declined to 54.7% from 57.1%.
Cash Flow & Liquidity
During the first quarter of fiscal 2019, Sprint generated $2,244 million of net cash from operating activities compared with $2,430 million in the year-ago quarter. As of Jun 30, 2019, the wireless carrier had $4,869 million in cash and equivalents with $35,073 million of long-term debt and finance lease obligations.
Zacks Rank & Stocks to Consider
Sprint currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader industry are Harmonic Inc. (HLIT - Free Report) , Comtech Telecommunications Corp. (CMTL - Free Report) and Nokia Corp. (NOK - Free Report) . While Harmonic and Comtech sport a Zacks Rank #1 (Strong Buy), Nokia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Harmonic surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 119.9%.
Comtech surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 216.7%.
Nokia surpassed earnings estimates thrice in the trailing four quarters, the average positive surprise being 89.3%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
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