Sprint (S) Pops on Q2 Results, Positive Guidance
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Price: $7.33 +0.27%
EPS Growth %: +27.6%
Financial Fact:
Net operating revenues: 8.79B
Today's EPS Names:
ANF, DXLG, FL, More
EPS Growth %: +27.6%
Financial Fact:
Net operating revenues: 8.79B
Today's EPS Names:
ANF, DXLG, FL, More
Trade S Now!
Shares of Sprint Nextel Corp. (NYSE: S) jumped 15 percent today after the company reported earnings. For the second quarter, the company reported EPS of ($0.46), $0.06 worse than the analyst estimate of ($0.40). Revenue for the quarter came in at $8.8 billion versus the consensus estimate of $8.73 billion. The loss of $.46 per share for the second quarter of 2012 compares to a net loss of $.28 per share in the second quarter of 2011. However, investors are reacting as the company raised its FY12 adjusted OIBDA outlook to $4.5-$4.6 billion. Free Cash Flow was $209 million for the quarter, compared to $267 million for the second quarter of 2011 and $138 million for the first quarter of 2012.
Sprint reported the best ever platform postpaid ARPU, and platform wireless service revenue growth was 16 percent year-over-year. Platform postpaid churn was also the best ever, at 1.69 percent. iPhone sales accounted for 40 percent of new postpaid customers.
During the conference call, the tone was mostly positive. The company feels it is ahead of the pace needed to meet its commitments to Apple (Nasdaq: AAPL). Importantly, the recapture rate for postpay Nextel adds was 60% in Q2. In Q3 and Q4, they said it would likely be closer to 40 percent. With this recapture rate Sprint has had to offer some discount and credits.
Sprint has not yet seen any change in trends from roll out of Verizon (NYSE: VZ) data shared plans. During the call, management alluded to a change in its tablet strategy. New M&A activity is probably out of the question for the time being.
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Sprint reported the best ever platform postpaid ARPU, and platform wireless service revenue growth was 16 percent year-over-year. Platform postpaid churn was also the best ever, at 1.69 percent. iPhone sales accounted for 40 percent of new postpaid customers.
During the conference call, the tone was mostly positive. The company feels it is ahead of the pace needed to meet its commitments to Apple (Nasdaq: AAPL). Importantly, the recapture rate for postpay Nextel adds was 60% in Q2. In Q3 and Q4, they said it would likely be closer to 40 percent. With this recapture rate Sprint has had to offer some discount and credits.
Sprint has not yet seen any change in trends from roll out of Verizon (NYSE: VZ) data shared plans. During the call, management alluded to a change in its tablet strategy. New M&A activity is probably out of the question for the time being.
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