Sprint (S) Shares Surge on Strong Q4 Numbers; Apple's iPhone Hits Margins
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Price: $21.35 +0.80%
Revenue Growth %: +35.8%
Financial Fact:
Selling, general and administrative: 2B
Today's EPS Names:
CP, RUSHA, SEIC, More
Revenue Growth %: +35.8%
Financial Fact:
Selling, general and administrative: 2B
Today's EPS Names:
CP, RUSHA, SEIC, More
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Sprint (NYSE: S) shares are looking to start off in positive territory Wednesday following stronger-than-expected fourth-quarter numbers issued earlier.
Revenue for the third-largest U.S. wireless carrier improved 5.1 percent from $8.301 billion in the same quarter last year to $8.722 billion.
Sprint's quarterly loss moved from $929 million in the year-ago quarter to $1.303 billion, or 43 cents per share. Adjusting for certain items, the loss narrowed to 35 cents per share.
Analysts on the Street expected revs of $8.69 billion and a loss of 37 cents per share.
Adjusted OIBDA margin moved from 17.6 percent during 2010's fourth quarter to 10.8 percent.
During the quarter, Sprint added 1.6 million net wireless subs, with a gain of 161,000 net postpaid subs and 507,000 net prepaid subs. Postpaid churn increased 0.12 points to 1.98 percent, which Sprint attributes more to "higher involuntary deactivations which occur when Sprint disconnects a customer due to lack of payment or violations of terms and conditions." Prepaid churn fell from 4.93 percent last year to 3.68 percent.
Total retail wireless postpaid ARPU improved from $57.65 to $58.59, while prepaid moved from $27.19 to $26.62.
Wirelline revs slipped 14 percent to $1.054 billion.
Notably, Sprint's cost of products jumped from $2.011 billion in the same period last year to $2.631, due primarily to the addition of Apple's (Nasdaq: AAPL) iPhone to its smartphone lineup.
"During the past year, Sprint added more than 5 million net new customers and grew wireless service revenue by more than 5 percent, including 17 percent for the Sprint platform," commented CEO Dan Hesse. "This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out."
Sprint shares are up over 4 percent to $2.56 in pre-market action Wednesday.
Revenue for the third-largest U.S. wireless carrier improved 5.1 percent from $8.301 billion in the same quarter last year to $8.722 billion.
Sprint's quarterly loss moved from $929 million in the year-ago quarter to $1.303 billion, or 43 cents per share. Adjusting for certain items, the loss narrowed to 35 cents per share.
Analysts on the Street expected revs of $8.69 billion and a loss of 37 cents per share.
Adjusted OIBDA margin moved from 17.6 percent during 2010's fourth quarter to 10.8 percent.
During the quarter, Sprint added 1.6 million net wireless subs, with a gain of 161,000 net postpaid subs and 507,000 net prepaid subs. Postpaid churn increased 0.12 points to 1.98 percent, which Sprint attributes more to "higher involuntary deactivations which occur when Sprint disconnects a customer due to lack of payment or violations of terms and conditions." Prepaid churn fell from 4.93 percent last year to 3.68 percent.
Total retail wireless postpaid ARPU improved from $57.65 to $58.59, while prepaid moved from $27.19 to $26.62.
Wirelline revs slipped 14 percent to $1.054 billion.
Notably, Sprint's cost of products jumped from $2.011 billion in the same period last year to $2.631, due primarily to the addition of Apple's (Nasdaq: AAPL) iPhone to its smartphone lineup.
"During the past year, Sprint added more than 5 million net new customers and grew wireless service revenue by more than 5 percent, including 17 percent for the Sprint platform," commented CEO Dan Hesse. "This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out."
Sprint shares are up over 4 percent to $2.56 in pre-market action Wednesday.
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