Earnings Preview: Sprint Reports Q4 Results Wednesday

| About: Sprint Corporation (S)

Sprint Nextel (NYSE:S) is expected to report last fiscal quarter's results before the opening bell on February 08, 2012. We can review how Sprint Nextel has performed recently. Sprint Nextel Corporation, through its subsidiaries, offers wireless and wireline communications products and services to individual consumers, businesses, government subscribers, and resellers in the United States, Puerto Rico, and the U.S. The company was founded in 1899 and is headquartered in Overland Park, Kansas. Sprint Nextel trades an average of 37.5 million shares per day and has a marketcap of $6.7 Billion.

52 Week High: $6.45
52 Week Low: $2.10
Book Value: $4.36
Float Short: 2.65%

On average, 24 analysts are expecting a drop of $-0.28 in earnings per share compared to last quarter's results of $-0.10. Investors will be looking to top $-0.38 per share based on the estimated mean earnings. Analyst estimates range between $-0.52 and $-0.29 per share.

Looking at the price movement over the last month, the stock has fallen in price -1.34%, and -49.20% from one year ago. When comparing to the S&P 500, the year to date difference is -10.40%. I am currently bullish and have been bullish for a few months now. I have written several articles about Sprint (click here to read) in relation to selling option premium. Sprint is one of the very few sub $5.00 stocks I believe is worth looking at. The last three quarters, Sprint was able to beat (still negative, but a beat).

Management has provided an improvement of year-over-year revenue. Revenue reported was $32.56 billion for 2010 vs. $32.26 billion for 2009. The bottom line has falling earnings year-over-year of $-3.47 billion for 2010 vs. $-2.44 billion for 2009.The company's earnings before interest and taxes are rising with an EBIT year-over-year of $-595.00 million for 2010 vs. $-1.40 billion for 2009.

The short interest is relatively low at 2.65%%. Be sure to look over the chart below with the short interest in both total shares shorted and number of days to cover short interest based on daily volume. This will give you an idea of the trend.

Here is a look at the fiscal year revenue:


Here is the last few quarters to get an idea how well they perform compared to estimates:

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for S:


The number of days to cover short interest based on average daily trading volume for S:


I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in S over the next 72 hours.