Sprint Earnings Imminent

S&P 500 (NYSE:SPY) component Sprint Nextel (NYSE:S) will unveil its latest earnings on Thursday, October 25, 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 50 cents per share, a wider loss from the year-earlier quarter net loss of 10 cents. During the past three months, the average estimate has moved down from a loss of 42 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 50 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 2 cents, reporting net loss of 39 cents per share against a mean estimate of a loss of 41 cents per share.

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A Look Back: In the second quarter, the company’s loss widened to a loss of a $1.37 billion (46 cents a share) from a loss of $847 million (28 cents) a year earlier, but beat analyst expectations. Revenue rose 6.4% to $8.84 billion from $8.31 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $1.60 (39.5%), from $4.05 to $5.65. 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. It saw one of its worst periods between August 17, 2012 and August 23, 2012 when shares fell for five straight days, dropping 7.9% (-41 cents) over that span.

Wall St. Revenue Expectations: On average, analysts predict $8.81 billion in revenue this quarter, a rise of 5.8% from the year-ago quarter. Analysts are forecasting total revenue of $35.38 billion for the year, a rise of 5% from last year’s revenue of $33.68 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 2.2% in the third quarter of the last fiscal year, 5.1% in the fourth quarter of the last fiscal year and 5.1% in the first quarter before increasing again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 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. The company regressed in this liquidity measure from 1.9 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 14.4% to $7.36 billion while assets decreased 5.1% to $11.6 billion.

Analyst Ratings: There are mostly holds on the stock with 15 of 27 analysts surveyed giving that rating.

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

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