Sprint (S) Issues Better-Than-Expected Q3 Loss of 10c/Share
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Price: $22.30 -0.71%
Revenue Growth %: +19.8%
Financial Fact:
Interest Expense: -630M
Today's EPS Names:
MTEX, NSYS, PLNH, More
Revenue Growth %: +19.8%
Financial Fact:
Interest Expense: -630M
Today's EPS Names:
MTEX, NSYS, PLNH, More
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Sprint Nextel (NYSE: S) Wednesday reported its third-quarter results. Shares last traded at $2.79 in pre-market action, up more than 3 percent from Tuesday's close.
The company reported a 2 percent gain in consolidated net operating revenue to $8.33 billion, inline with the analyst consensus of $8.38 billion.
Operating expenses totaled 97.5 percent of total operating revenue, leading to an operating income loss of $208 million. Net loss for the quarter totaled $301 million, much better than the $911 million net loss a year ago and the $847 million net loss last quarter.
Sprint posted a loss of $0.10 per share, better than a 22 cent loss expected from analysts.
As of Sept. 30, 2011, the company’s total liquidity was approximately $5 billion, consisting of $4 billion in cash, cash equivalents and short-term investments and $1 billion of undrawn borrowing capacity available under its revolving bank credit facility.
The company served more than 53 million customers at the end of the third quarter of 2011. This includes 32.9 million postpaid subscribers, 14.3 million prepaid subscribers, and approximately 6.3 million wholesale and affiliate subscribers. For the quarter, Sprint added nearly 1.3 million net wireless customers, including net additions of 441,000 retail subscribers and net additions of 835,000 wholesale and affiliate subscribers
Postpaid wireless ARPU increased $3 from the year-ago period and the prepaid subscriber base has grown 23 percent since the third quarter of 2010.
Sprint reported postpaid churn of 1.91 percent, compared to 1.93 percent for the year-ago period. Prepaid churn was 4.07 percent, compared to 5.32 percent for the year-ago period.
Approximately 8 percent of postpaid customers upgraded their handsets during the quarter. Growth in Sprint brand net additions was achieved without the benefit of Apple’s iPhone 4S and iPhone 4, which launched Oct. 14. The launch of this iconic device resulted in Sprint’s best-ever day of sales in retail, web and telesales for a device family in Sprint history.
Sprint Nextel expects net postpaid subscriber additions for the full year 2011 and to improve total net wireless subscriber additions in 2011, as compared to 2010. The company expects full year capital expenditures in 2011, excluding capitalized interest, to be approximately $3 billion. In addition, the company expects Free Cash Flow between negative $200 million and positive $100 million for 2011.
“Sprint’s focus on creating the best customer experience with simple, unlimited plans and innovative products and services continues to strengthen our brand and drive positive results,” said Dan Hesse, Sprint CEO. “We are adding to our customer base, our ARPU is increasing, and as a result our wireless revenues are growing.”
The company reported a 2 percent gain in consolidated net operating revenue to $8.33 billion, inline with the analyst consensus of $8.38 billion.
Operating expenses totaled 97.5 percent of total operating revenue, leading to an operating income loss of $208 million. Net loss for the quarter totaled $301 million, much better than the $911 million net loss a year ago and the $847 million net loss last quarter.
Sprint posted a loss of $0.10 per share, better than a 22 cent loss expected from analysts.
As of Sept. 30, 2011, the company’s total liquidity was approximately $5 billion, consisting of $4 billion in cash, cash equivalents and short-term investments and $1 billion of undrawn borrowing capacity available under its revolving bank credit facility.
The company served more than 53 million customers at the end of the third quarter of 2011. This includes 32.9 million postpaid subscribers, 14.3 million prepaid subscribers, and approximately 6.3 million wholesale and affiliate subscribers. For the quarter, Sprint added nearly 1.3 million net wireless customers, including net additions of 441,000 retail subscribers and net additions of 835,000 wholesale and affiliate subscribers
Postpaid wireless ARPU increased $3 from the year-ago period and the prepaid subscriber base has grown 23 percent since the third quarter of 2010.
Sprint reported postpaid churn of 1.91 percent, compared to 1.93 percent for the year-ago period. Prepaid churn was 4.07 percent, compared to 5.32 percent for the year-ago period.
Approximately 8 percent of postpaid customers upgraded their handsets during the quarter. Growth in Sprint brand net additions was achieved without the benefit of Apple’s iPhone 4S and iPhone 4, which launched Oct. 14. The launch of this iconic device resulted in Sprint’s best-ever day of sales in retail, web and telesales for a device family in Sprint history.
Sprint Nextel expects net postpaid subscriber additions for the full year 2011 and to improve total net wireless subscriber additions in 2011, as compared to 2010. The company expects full year capital expenditures in 2011, excluding capitalized interest, to be approximately $3 billion. In addition, the company expects Free Cash Flow between negative $200 million and positive $100 million for 2011.
“Sprint’s focus on creating the best customer experience with simple, unlimited plans and innovative products and services continues to strengthen our brand and drive positive results,” said Dan Hesse, Sprint CEO. “We are adding to our customer base, our ARPU is increasing, and as a result our wireless revenues are growing.”
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