Sprint Corporation (S) - NYSE
  • Nov. 3, 2015, 8:53 AM
    • Sprint (NYSE:S) is 8.1% lower premarket after fiscal Q2 results where it indeed returned to positive net additions in postpaid phone subscribers, but declining revenue disappointed, as did a net loss that didn't narrow as much as hoped.
    • Net loss was $585M compared to a year-ago $765M. Revenues were off nearly 6%, though wireless service revenues plus installment plan billings and lease revenue of $7.1B was up slightly Y/Y.
    • Adjusted EBITDA of $2.008B beat an expected $1.967B.
    • Postpaid phone net added subscribers was 237,000, the first quarterly additions in years; that number includes 199,000 prepaid-to-postpaid migrations for a true new-subscriber number of about 38,000 (538,000 better than last year).
    • Sprint platform postpaid net additions were 553,000, compared to a year-ago net loss of 272,000; total net additions were 1.1M vs. a year-ago 590,000.
    • Revenue by segment: Service revenue, $6.88B (down 7.6%); equipment revenue, $1.095B (up 5.3%).
    • The carrier is guiding for full-year EBITDA to be at the low end of the previous range of $7.2B-$7.6B, and full-year cash capex of about $5B, excluding impact of leased devices sold through indirect channels.
    | Nov. 3, 2015, 8:53 AM | 18 Comments
  • Nov. 3, 2015, 7:31 AM
    • Sprint (NYSE:S): FQ2 EPS of -$0.15 vs. -$0.19 in 2Q14
    • Revenue of $7.52B (-5.2% Y/Y)
    | Nov. 3, 2015, 7:31 AM | 37 Comments
  • Nov. 2, 2015, 6:10 PM
    • Sprint (S +2.9%) and Cuba's state telecommunications firm Empresa de Telecomunicaciones de Cuba -- Etecsa -- have signed a roaming deal that's the first direct deal of that kind between phone companies in the two countries.
    • With the deal, Sprint subscribers visiting Cuba can send and receive calls and texts directly through Etecsa, which monopolizes telecom service in the country.
    • Verizon began offering the first roaming service in Cuba in September, but that service has to go through third parties. Earlier this year, Sprint's prepaid Boost Mobile service launched a prepaid plan for calling Cuba that it targeted at Cuban-American core Miami.
    • With increasing liberalization, Cuba's phone market could become the largest in the Caribbean, as mobile phone penetration is low in a population of 11M.
    • After solid gains today, Sprint has given some back after hours, -1.1%.
    | Nov. 2, 2015, 6:10 PM
  • Nov. 2, 2015, 12:29 PM
    • After a cavalcade of recent customer-focused initiatives, Sprint (NYSE:S) is expected to add postpaid phone subscribers for the first time since Q4 2010 when it reports fiscal Q2 earnings tomorrow morning.
    • And that should lead to a narrower loss even if revenue slips as expected. Consensus expectations are for Sprint to post revenues of $8.1B, down 4% from the prior year's $8.49B, and an EPS of -$0.07 compared to 2014's -$0.12.
    • Sprint shares are up 2.5% today, a rebound from a couple of market days where the stock declined 5.6%.
    • Oppenheimer's Tim Horan sees a "modest level of phone net adds (perhaps in the 200,000 range)," and while he expects it's a long-term underperformer, "for this upcoming quarter, the positive phone net adds, lease accounting benefits and new financing could benefit the stock."
    • Pacific Crest's Michael Bowen sees postpaid phone net adds of 45,000: "We expect Sprint to provide additional color on the formation of its leasing company and on its network strategy. In addition, we expect to hear more concrete plans regarding Sprint's recent cost-cutting initiatives."
    • A plan to cut $2.5B in costs that CFO Tarek Robbiati laid out last month has begun to get under way with such new moves as slashing severance pay and cutting free water and yogurt at HQ.
    • Previously: Sprint Chairman Son buys Kansas City home near CEO Claure (Oct. 30 2015)
    | Nov. 2, 2015, 12:29 PM | 19 Comments
  • Nov. 2, 2015, 2:07 AM
    • Expanding its ongoing turnaround efforts, Sprint (NYSE:S) aims to slash fiscal 2016 expenses by as much as $2.5B, through job cuts and a wide array of cost controls.
    • "We are leaving no stone unturned and looking at all areas," company spokesman Dave Tovar said in an interview, but declined to predict how many employees would be laid off.
    • The estimated cost savings for Sprint would be equivalent to about 10% of its current annual operating costs of $26B.
    | Nov. 2, 2015, 2:07 AM | 1 Comment
  • Oct. 30, 2015, 4:37 PM
    • As tea leaves for reading go, Sprint (S -1.3%) shareholders have looked to worse teas: Chairman Masayoshi Son has bought a home in Kansas City, an indication that he'll be spending more time at headquarters working on the struggling carrier's turnaround.
    • Son lives in Japan, but has been meeting monthly with Sprint execs in California, where he also owns a house. A home in Kansas City gives him a place to stay during more frequent visits to HQ.
    • The new home is also close to CEO Marcelo Claure's house in the Mission Hills neighborhood.
    • Despite a dip today, Sprint shares are up 38% over the past three months.
    • Previously: Sprint halves severance pay in latest cost control measure (Oct. 26 2015)
    • Previously: Claure: With its revenues, no reason Sprint can't be profitable (Oct. 26 2015)
    | Oct. 30, 2015, 4:37 PM | 21 Comments
  • Oct. 29, 2015, 3:27 PM
    • Sprint (S -5.1%) has yet another revision to its plans, offering a "starter unlimited data" plan that includes 1 GB of high-speed data plus unlimited (2G, slow-speed) data for $20/month.
    • The offering launches tomorrow and can be tied to a $20/month unlimited talk/text plan along with Sprint Global Roaming.
    • As previously reported, Sprint kicked up the price of its true unlimited plan to $70/month. That plan offers unlimited high-speed data plus 3 GB of mobile hotspot usage along with Global Roaming. Additional lines on that plan are $60/month each.
    • The starter-plan participants will be able to buy additional chunks of high-speed data as needed but won't face overages for unlimited use of the 2G-speed data.
    | Oct. 29, 2015, 3:27 PM | 24 Comments
  • Oct. 26, 2015, 3:49 PM
    • Sprint (S +1.6%) is cutting severance pay in half -- which may be presaging more layoffs amid the company's latest round of cost controls.
    • The company is cutting severance pay to one week of pay per year worked at Sprint, from the previous two, for employees notified after Jan. 30 of their layoff.
    • Last fall about this time, Sprint cut 458 employees. The company is in the middle of a new cost-cutting push, with CFO Tarek Robbiati vowing it will cut $2.5B from a "bloated" structure.
    • Previously: Sprint to target 'bloated' structure with $2.5B in cost cuts (Oct. 09 2015)
    | Oct. 26, 2015, 3:49 PM | 45 Comments
  • Oct. 26, 2015, 1:02 PM
    • Marcelo Claure says moving up to be CEO of Sprint (S +1.3%) was like "moving to the major leagues" and says there's no reason the company can't gradually become profitable.
    • In an interview with The Wall Street Journal, Claure says he took on the challenge at a company that burned $5B in cash, lost $800M and had $32B in debt because he found it hard to understand why a firm with $35B in revenue can't be profitable.
    • Coming from the company he founded, Brightstar, to Sprint has been the most difficult challenge of his life, he says.
    • After turning around customer losses, Claure says his next goals are much bigger: "Sprint has never had the best network in the U.S. Sprint hasn’t turned positive free cash flow in many years. Sprint hasn’t made real profit in many years. So now we have set those goals."
    | Oct. 26, 2015, 1:02 PM | 9 Comments
  • Oct. 22, 2015, 2:25 PM
    • SoftBank (OTCPK:SFTBY +1.6%) gave some more visibility on planned investments as Chairman Masayoshi Son said the company will spread "several billions" of dollars each year around the world as part of its evolution into a true global enterprise.
    • There's particular interest in India, Son says. In a streamed conversation with likely successor and company president Nikesh Arora, Son said the company will seek out passionate entrepreneurs in the right markets, like Jack Ma (SoftBank's stake in Alibaba is more than 30%).
    • Arora had made a "personal bet" on SoftBank this summer by pledging to buy nearly half a billion dollars worth of its stock, and he's been a big proponent of investments in India -- possibly to the detriment of struggling Sprint (S +0.8%). SoftBank increased its ownership in Sprint to 83% last month but has said it wouldn't go above 85%.
    • Previously: SoftBank up 4.4% on Arora's multimillion-dollar 'personal bet' (Aug. 19 2015)
    | Oct. 22, 2015, 2:25 PM | 24 Comments
  • Oct. 20, 2015, 11:32 AM
    • Sprint (S -1.7%) hits a legal setback as it fails in a bid to dismiss a $300M fraud lawsuit filed by New York State over billing for wireless service taxes.
    • The state used whistleblower information to charge the company with failing to collect more than $100M in taxes from New York customers, in violation of a 2002 state law imposing those taxes on interstate services.
    • Sprint had claimed that law was unconstitutional, but the state's Court of Appeals rejected that contention in a 4-1 decision.
    • The state's attorney general is seeking to treble the $100M tax collection in damages and penalties.
    | Oct. 20, 2015, 11:32 AM | 8 Comments
  • Oct. 16, 2015, 5:41 PM
    | Oct. 16, 2015, 5:41 PM | 30 Comments
  • Oct. 16, 2015, 5:07 PM
    • The FCC is probing four companies -- AT&T (T +1%), Verizon (VZ +0.1%), CenturyLink (CTL -0.7%) and Frontier Communications (FTR -1.9%) -- over terms they set for business broadband, the dedicated mission-critical lines that make everything from schools to ATMs work.
    • That's a $20B market, and competitors including Sprint (NYSE:S), Level 3 (NYSE:LVLT) and Cogent (NASDAQ:CCOI), along with Amazon.com and others, are complaining about unfair lock-ups with large early termination fees.
    • The FCC has found "potentially unjust and unreasonable practices" that rise to the level of an investigation. It says the four companies it's probing use plans with “a complicated web of all-or-nothing bundling, loyalty and term commitments, complex enforcing penalties” and other provisions, and asked them to respond by Dec. 18.
    • In a mailed statement, industry group USTelecom (of which the four companies are members) says the investigation is a "rear-view mirror" approach. “Although the FCC says that it wants to be a data-driven agency, promote facilities-based competition, and incent broadband investment, it just can’t seem to get beyond its telephone-era mindset when it comes to regulating 20th century legacy services," says USTelecom President Walter McCormick.
    | Oct. 16, 2015, 5:07 PM | 24 Comments
  • Oct. 16, 2015, 10:33 AM
    • A review of U.S. wireless operators has Nomura making AT&T (T +0.9%) and T-Mobile (TMUS +2.1%) its top picks, with a more subdued outlook on Verizon (VZ, flat) and Sprint (S -1.1%).
    • The firm has Buy ratings on T and TMUS, and is Neutral on VZ and S.
    • The companies' reactions to a modest growth future vary widely, says Jeffrey Kvaal. Verizon and AT&T are taking two radically different paths into video, while Sprint and T-Mobile go after share gain -- helped by the fact that the incumbents are unlikely to lower their prices.
    • DirecTV synergies should more than offset some share loss at AT&T, and the firm faces modest video subscriber erosion, he says. Meanwhile, T-Mobile should be able to maintain share gains and EBITDA expansion with its aggressive approach.
    • As for Verizon, "visibility beyond a sideways 2016 is limited," and Sprint continues to face a balance sheet strain though its improving network and pricing models have put it "on the brink of a true revival story."
    • Price targets: For AT&T, $39 (closed yesterday at $33.49, 16.5% implied upside); for T-Mobile, $48 (closed yesterday at $39.94, 20% implied upside); for Verizon, $47 (closed yesterday at $44.67, 5% implied upside); for Sprint, $4 (closed yesterday at $4.27).
    | Oct. 16, 2015, 10:33 AM | 17 Comments
  • Oct. 14, 2015, 3:04 PM
    • T-Mobile (TMUS -1.6%) has brought back its 10 GB four-line family plan in what may be a harbinger of the wireless war heating up for the holidays.
    • The plan -- $120/month for four lines, 10 GB of data -- is reminiscent of more aggressive plans ended this summer, from Verizon ($80 for 10 GB) and T-Mobile ($100 for 10 GB).
    • Quieter AT&T (T -0.2%), meanwhile, "seems to be taking a more passive strategy, with a distinct focus on subscriber retention, ARPU (average revenue per user) preservation and setting the stage for growth and cross leverage opportunities as it integrates the DirecTV asset," says Barclays' Amir Rozwadowski.
    • Including tablets, Rozwadowski is forecasting that Verizon (VZ -0.7%) will add 1.15M postpaid subscribers this quarter, followed by T-Mobile (1.07M), AT&T (300K) and Sprint (S -2.9%) with 270K.
    • Verizon is first up among quarterly reporters next Tuesday.
    | Oct. 14, 2015, 3:04 PM | 13 Comments
  • Oct. 13, 2015, 12:17 PM
    | Oct. 13, 2015, 12:17 PM | 9 Comments
Company Description
Sprint Corp. operates as a communication company, which offers a comprehensive range of wireless and wire line communications products and services to consumers, businesses and government users. The company operates through two segments: Wireless and Wireline. The Wireless segment offers... More
Sector: Technology
Industry: Wireless Communications
Country: United States