Sprint Nextel Corporation Earnings: Loss Widens
S&P 500 (NYSE:SPY) component Sprint Nextel Corporation (NYSE:S) reported its results for the fourth quarter. Sprint Nextel offers a range of wireless and wireline communications products and services.
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Sprint Nextel Earnings Cheat Sheet for the Fourth Quarter
Results: Loss widened to $1.3 billion (43 cents per diluted share) from $929 million (loss of 31 cents per share) in the same quarter a year earlier.
Revenue: Rose 5.1% to $8.72 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: Sprint Nextel Corporation fell short of the mean analyst estimate of a loss of 38 cents per share. Analysts were expecting revenue of $8.68 billion.
Quoting Management: “Our strong fourth quarter performance illustrates the power of matching iconic devices like the iPhone with our simple, unlimited plans and industry-leading customer experience,” said Dan Hesse, Sprint CEO. “During the past year, Sprint added more than five million net new customers and grew wireless service revenue by more than five percent, including 17 percent for the Sprint platform. This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out.”
Revenue has risen the past four quarters. Revenue increased 2.2% to $8.33 billion in the third quarter. The figure rose 3.6% in the second quarter from the year earlier and climbed 2.8% in the first quarter from the year-ago quarter.
The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 12 cents, and in the second quarter, it was ahead by 6 cents.
Looking Forward: Expectations for the company’s next quarter results are looking up. The average estimate for the first quarter of the next fiscal year is a loss of 32 cents per share, up from a loss of 33 cents a month ago. The average estimate for the fiscal year has reached a loss of 90 cents per share, down from a loss of 89 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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