Analyst Notes from Sprint (S) CEO Dan Hesse Presentation

September 19, 2012 2:59 PM EDT Send to a Friend
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Shares of Sprint (NYSE: S) are booming higher Wednesday afternoon after CEO Dan Hesse presented at investor conference. Analysts at Wells Fargo issued their highlights from the presentation.

- Heese expected significant wirelss consolidation - "Hesse's strong preference is to not significantly change the network build plan for Network Vision until the middle of 2013. However, most M&A activity takes about nine months so Hesse noted this would mean a deal could be announced now. Sprint does expect significant consolidation in the wireless industry and it expects to participate. Sprint views itself as sub-scale in the US wireless industry."

- Comfortable with spectrum through 2016 - "Sprint-owned spectrum will take it into late 2014 and CLWR (NASDAQ: CLWR) wholesale capacity puts Sprint comfortably into the 2016 timeframe. An important feature of Network Vision is the ability to host someone else's spectrum and this is still an important objective."

- Price increases unlikely without footprint disadvantage - "In discussing pricing of unlimited and competing with Shared Data plans, Hesse noted it wouldn't make sense for Sprint to raise pricing when it has a network footprint disadvantage in LTE."

- Porting ratios not impacted by shared data plans - "Verizon has continued to be successful in porting due largely to its superior LTE footprint, but in general Sprint has not seen the Shared Data plans as differentiators."

- Nextel conversion rates unlikely to remain at 60% - "The 60% conversion rate reported in Q2 was very high and will be difficult to repeat. The remaining Nextel customers are mostly large customers and all of the competitors are aggressively bidding on these RFPs."

- Virgin iPhone pulling form postpaid - "Sprint has seen a growing number of iPhone subs on Virgin and noted many of those subscribers are porting in from competing postpaid plans."

- Still expects APRU tailwind - "The biggest driver of ARPU accretion is the $10 smartphone surcharge and there are still a large number of subscribers that haven't upgraded to a smartphone or haven't upgraded since the policy was put in place."

For an analyst ratings summary and ratings history on Sprint click here. For more ratings news on Sprint click here.

Shares of Sprint are up 6.7 percent to $5.54.


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