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Sprint Corporation (S)

  • Tue, Nov. 3, 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.
    • Press release
    | Tue, Nov. 3, 8:53 AM | 18 Comments
  • Tue, Nov. 3, 7:31 AM
    • Sprint (NYSE:S): FQ2 EPS of -$0.15 vs. -$0.19 in 2Q14
    • Revenue of $7.52B (-5.2% Y/Y)
    • Press Release
    | Tue, Nov. 3, 7:31 AM | 37 Comments
  • Mon, Nov. 2, 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)
    | Mon, Nov. 2, 12:29 PM | 19 Comments
  • Wed, Aug. 5, 12:21 PM
    • After a 4.8% gain yesterday following a star appearance by Chairman Masayoshi Son on its earnings call, Sprint (NYSE:S) is giving it back today, -7.6%, and facing straight talk in analysts' reactions.
    • William Blair reiterated its Underperform rating. Oppenheimer reiterated that rating as well.
    • Canaccord Genuity has cut its price target on Sprint to $3.75, from $5.
    • Shares closed yesterday at $3.49 and are currently trading at $3.22.
    • On the other hand, Cowen has moved its price target up to $4 -- implying 24% upside from current prices.
    • Related: Sprint (S) R. Marcelo Claure on Q1 2015 Results - Earnings Call Transcript (Aug. 04 2015)
    • Previously: Sprint earnings call: Masa Son committed to turnaround (Aug. 04 2015)
    • Previously: Sprint up 11.9% premarket as it beats on EPS, boosts full-year guidance (Aug. 04 2015)
    | Wed, Aug. 5, 12:21 PM | 10 Comments
  • Tue, Aug. 4, 5:30 PM
  • Tue, Aug. 4, 11:23 AM
    • On Sprint's (S +6%) earnings call this morning, SoftBank (OTCPK:SFTBY) chief Masayoshi Son joined in to reiterate his commitment to the struggling carrier.
    • "I'm extremely excited about the turnaround of Sprint," he said. "I don't want to sell the company. I think Sprint is going to be a very good company, of which I will be very proud."
    • As anticipated, Sprint fell behind T-Mobile in total users and dropped into fourth place among U.S. networks, but boosted its outlook for 2015 and detailed how it would pursue "densification" of its network with the help of both macro and small cells.
    • "Japan has the best network in the world,” Son said. “To me, every time I come (to the U.S.) ... I say this network is not something you should be proud of. It’s actually really bad. It's not just Sprint; all networks are pretty bad. You have invented Internet; you have invented telephones ... but the network is not something that you should be proud of." He's working "with my engineers, every night" on Sprint's network design.
    • That affects any plan like creating a competitive alternative to a video service like Verizon's upcoming Go90 service. "How would a customer benefit from a video bundle?" Son asked. "The network's congested, very badly; before you talk about video bundle, all of the four carriers have to cure the issue of congestion."
    • "What Verizon is trying to do is what mobile providers have tried ... the track record of success of carriers around the world trying to bring these solutions has not been stellar," said CEO Marcelo Claure, noting any action Sprint takes there is likely to be through partnerships rather than buying assets.
    • Claure noted the record low churn was broad-based: "What's nice is every single churn measure we do, we're coming down. The network experience is better, customer experience is better."
    • Previously: Sprint up 11.9% premarket as it beats on EPS, boosts full-year guidance (Aug. 04 2015)
    • Previously: Sprint reports FQ1 results (Aug. 04 2015)
    • Previously: Sprint earnings: Management shakeup draws focus (Aug. 03 2015)
    | Tue, Aug. 4, 11:23 AM | 28 Comments
  • Tue, Aug. 4, 9:12 AM
    • Sprint (NYSE:S) is up 11.9% premarket after posting a loss well better than expected and boosting its outlook for 2015 earnings amid record low postpaid churn.
    • EPS of -$0.01 beat an expected -$0.06. Adjusted EBITDA of $2.1B beat an expected $1.82B. Revenue breakout: Service revenue, $7.04B (down 8.4%); Equipment revenue, $990M (down 10.5%).
    • Postpaid net adds of 310K subscribers. Postpaid phone losses were 12K customers, but the company pointed to net adds in May and June. Prepaid net losses of 366K were better than a year-ago loss of 542K (mainly driven by Assurance brand). Wholesale net adds of 731K driven by connected devices.
    • Sprint platform postpaid churn was a record low 1.56% (down from a prior-year 2.05%). Sprint platform postpaid average billing per user was $61.67, down 3% Y/Y, and average billing per account was $164.63, up 2%.
    • Sprint is pursuing significant densification of its network including "additional macro cell sites, deployment of tens of thousands of small cells, and further expansion of the 2.5 GHz spectrum across the company's existing sites."
    • For the full year, the company now sees EBITDA of $7.2B-$7.6B, up from its previous $6.5B-$6.9B and well over an expected $6.76B.
    • Press release
    | Tue, Aug. 4, 9:12 AM | Comment!
  • Tue, Aug. 4, 7:38 AM
    • Sprint (NYSE:S): FQ1 EPS of -$0.01
    • Revenue of $8.03B (-8.6% Y/Y)
    • Press Release
    | Tue, Aug. 4, 7:38 AM | 13 Comments
  • Tue, Jul. 28, 10:06 PM
    • Another quarter of telecom earnings, and another quarter where analysts figure that Sprint (NYSE:S) will be overtaken by T-Mobile (NYSE:TMUS) in total customers to take the No. 3 spot among U.S. wireless providers.
    • Last quarter, T-Mobile effectively captured all of the industry's subscriber growth, but Sprint held the No. 3 position, 57.1M customers to 56.8M, despite shedding some core postpaid phone subscribers.
    • Now, analysts expect heat (and perhaps more Twitterfights) as they predict that T-Mobile may have finally taken the lead in the quarter ended June 30.
    • GSMA Intelligence is expecting T-Mobile to report 58.9M customers to Sprint's 58.3M connections, when Sprint releases its final numbers Aug. 4.
    • "It almost has a psychological significance that trumps the practical significance," says IDC's John Jackson.
    • T-Mobile reports Thursday, and consensus estimates have it reporting $0.22/share in earnings on $7.96B in revenues and $1.77B in EBITDA. Sprint reports Aug. 4, and consensus estimates have it posting a loss of $0.05/share on $8.33B in revenues and $1.82B EBITDA.
    | Tue, Jul. 28, 10:06 PM | 3 Comments
  • Mon, May 11, 3:57 AM
    • SoftBank's (OTCPK:SFTBY) chief executive Masayoshi Son has anointed the head of the firm's Internet investment arm, Nikesh Arora, as a future successor, but confirmed that he won't be retiring yet.
    • The announcement followed the company's latest earning results that beat forecasts, despite the continuing struggles to turn around U.S. unit Sprint (NYSE:S).
    • For the fiscal year that ended in March, SoftBank said its net income rose 29% to ¥763.7B, while revenue jumped 30%. Operating profit of ¥982.7B beat the ¥900 billion target the company set in November.
    • SoftBank, however, failed to provide guidance for the current year, citing a "large number of uncertain factors."
    | Mon, May 11, 3:57 AM | 7 Comments
  • Tue, May 5, 8:49 AM
    • Sprint (NYSE:S) was up 0.8% premarket as it posted a wider loss for its fiscal Q4 and lost core postpaid phone subscribers, but held off hard-charging T-Mobile in overall customers, 57.1M to 56.8M.
    • Losses of $0.06 (A $0.05 adjusted loss) were expected, but revenue that dropped nearly 7% to $8.3B missed expectations by about $200M.
    • The company posted 1.2M net adds to its platform -- including 211K postpaid net adds and 546 prepaid net adds -- but postpaid phone subscribers lost 201K on a net basis. Net platform adds were boosted by an increase of 349K tablet subscribers. Platform postpaid churn of 1.84% improved from 2.3% last quarter.
    • Revenue breakout: Service revenue, $7.14B (down 9.4%); Equipment revenue, $1.14B (up 14.5%).
    • Adjusted EBITDA of $1.74B beat an expected $1.67B.
    • Press release
    | Tue, May 5, 8:49 AM | 12 Comments
  • Tue, May 5, 7:13 AM
    • Sprint (NYSE:S): FQ4 EPS of -$0.06 vs. -$0.04 in 4Q14
    • Revenue of $8.28B (-6.7% Y/Y)
    • Press Release
    | Tue, May 5, 7:13 AM | 3 Comments
  • Mon, May 4, 9:57 PM
    • Sprint (NYSE:S) reports earnings early Tuesday, and this is the quarter where watchers fear the company will lose its No. 3 status to T-Mobile -- which did its part by perhaps capturing effectively all of the industry's subscriber growth for the quarter.
    • Revenues are expected to decline as much as 5% as the big four wireless firms continue their price war, and "We believe Sprint will be a postpaid phone loser for the quarter," says Jonathan Schildkraut of Evercore. But: "The second story we see is an improvement in reported financial results — with the most important impact from leasing."
    • Yet unknown is the impact of Sprint's deal to co-brand 1,400 former RadioShacks.
    • Last quarter, postpaid average revenue per user declined both Y/Y and sequentially, to $58.90. The company reported a loss of $0.60/share on revenue that had fallen 1.9%.
    | Mon, May 4, 9:57 PM | 6 Comments
  • Tue, Apr. 28, 8:42 PM
    • During T-Mobile's (NYSE:TMUS) Q1 earnings call, colorful CEO John Legere took another opportunity to hint at the tie-up that increasingly seems to be in the company's future: with a cableco that offers broadband.
    • Just days after FCC opposition killed the Comcast-TWC merger, Legere pointed to the need to counterbalance AT&T (NYSE:T) and Verizon (NYSE:VZ), which combine wireless service with broadband offerings and even TV business.
    • Regulators seem to be opposed to cable-cable deals, and wireless-wireless deals like aborted plans for a Sprint (NYSE:S) merger with T-Mobile -- but Legere notes a natural fit may occur across industries: "The tangential players are touching mobile players in a way that makes a go-to-market strategy."
    • Analyst Craig Moffett urges caution, as regulators might already see the two industries as competition. "Wireless broadband is clearly the FCC's best hope for a counter to cable's wired advantage. They might decide that they aren't ready to allow a combination like that."
    • Possible cable suitors: CMCSA, TWC, CHTR, CVC
    • After earnings today, TMUS -0.3%.
    • Related: T-Mobile US (TMUS) Q1 2015 Results - Earnings Call Transcript (Apr. 28 2015)
    • Previously: T-Mobile grows Q1 revenues 13%, adds 1.8M subscribers (Apr. 28 2015)
    • Previously: T-Mobile keeps fanning Dish partnership flames (Mar. 06 2015)
    | Tue, Apr. 28, 8:42 PM | 21 Comments
  • Wed, Apr. 22, 5:35 PM
  • Tue, Feb. 24, 5:35 PM
Company Description
Sprint Corp is a communications company offering wireless and wireline communications products and services to individual consumers, businesses, government subscribers and resellers.