Sprint Nextel Earnings: Here’s Why the Stock is Down Now

Sprint Nextel Corp. (NYSE:S) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.14%.

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Sprint Nextel Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.21 in the quarter versus EPS of $-0.29 in the year-earlier quarter.

Revenue: Rose 0.68% to $8.79 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sprint Nextel Corp. reported adjusted EPS loss of $0.21 per share. By that measure, the company beat the mean analyst estimate of $-0.32. It beat the average revenue estimate of $8.71 billion.

Quoting Management: “This is a transformative year for Sprint and we’ve gotten off to a good start,” said Dan Hesse, Sprint CEO. “Record Sprint platform service revenue and subscriber levels fueled our performance. We achieved significant Adjusted OIBDA* growth while investing heavily to improve our network, expanding our 4G LTE footprint and offering customers the best smartphones with truly unlimited data plans.”

Key Stats (on next page)…

Revenue decreased 2.35% from $9.01 billion in the previous quarter. EPS increased to $-0.21 in the quarter versus EPS of $-0.42 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.22 to a loss $0.27. For the current year, the average estimate has moved down from a loss of $0.80 to a loss of $0.88 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)