Sprint’s Quarterly Earnings Approach

S&P 500 (NYSE:SPY) component Sprint Nextel (NYSE:S) will unveil its latest earnings tomorrow, Thursday, July 26, 2012. Sprint Nextel offers a range of wireless and wireline communications products and services.

Sprint Nextel Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 41 cents per share, a wider loss from the year-earlier quarter net loss of 6 cents. During the past three months, the average estimate has moved down from a loss of 38 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 40 cents during the last month.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 13 cents, reporting net loss of 29 cents per share against a mean estimate of a loss of 42 cents per share.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $863 million (29 cents a share) from a loss of $439 million (15 cents) a year earlier, but beat analyst expectations. Revenue rose 5.1% to $8.73 billion from $8.31 billion.

Stock Price Performance: Between April 25, 2012 and July 24, 2012, the stock price rose $0.98 (39.68%), from $2.47 to $3.45. It saw one of its worst periods between September 13, 2011 and September 22, 2011 when shares fell for eight straight days, dropping 15.7% (-56 cents) over that span. The stock price saw one of its best stretches over the last year between May 18, 2012 and May 29, 2012, when shares rose for seven straight days, increasing 14.1% (+33 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a rise of 5.1% in revenue from the year-earlier quarter to $8.73 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 3.6% in the second quarter of the last fiscal year, 2.2% in the third quarter of the last fiscal year and 5.1% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with 15 of 26 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.9 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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