Sprint Nextel Corporation (S) is expected to report Q2 earnings before market open Wednesday, August 6, with a conference call scheduled for 11:00 a.m. ET.
Guidance
Analysts are looking for EPS of 3c on revenue of $9.17B. The consensus range is (3c) to 8c for EPS, and $8.98B to $9.4B for revenue, according to First Call. The company reported strong Q1 results, beating analysts estimates for EPS and revenue. Sprint Nextel also stated it sees improved post-paid customer churn rate in Q2, and net post-paid subscriber losses improving marginally vs. Q1. There were rumors during the quarter that Sprint Nextel and South Korea's SK Telecom (SKM) were discussing joining together to develop new phones and services. The majority opinion was SK Telecom would take a minority position in Sprint, but there wouldn't be a merger.
Analyst Views
JP Morgan stated on July 16, it viewed the potential deal as unlikely. The firm didn't believe there was a strong likelihood of a combination given the continued operational challenges at Sprint. Further, the firm believed private equity would be hesitant to take part in another telecom deal given the recent Alltel/Verizon deal. The firm did, however, maintain a Neutral rating on the company's shares.
