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Sprint Corporation (S)

  • Nov. 4, 2014, 4:35 AM
    • Troubles at Sprint (NYSE:S) has forced SoftBank (OTCPK:SFTBY) to slash its operating profit forecast, which it now expects to be ¥900B ($7.9B) in the 12 months through March 2015, 10% down from the ¥1T profit it previously estimated.
    • The warning came as SoftBank reported that its second-quarter operating profit fell 23%.
    • Yesterday, Sprint slashed its full-year adjusted EBITDA guidance to $5.8B-$5.9B from $6.7B-$6.9B and announced that it was cutting another 2K jobs.
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  • Nov. 3, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: BLMN +19.4%. AUQ +9.0%. ABEV +8.5%. ELNK +8.3%. AMX +7.0%.
    • Top losers, as of 5:15 p.m.: BRDR -22.1%. SALE -18.2%. HLF -12.4%. CHGG -8.7%. S -6.8%.
  • Nov. 3, 2014, 5:13 PM
    • Along with its FQ2 results, Sprint (NYSE:S) announces it's cutting another 2K jobs, and is "targeting $1.5 billion of annualized cost reductions compared to 2014 spending levels." The carrier announced a month ago it's launching a new "workforce reduction plan;" its headcount is around 36K.
    • Sprint has also slashed its full-year capex guidance by ~$1B to less than $6B; it announced a cut of similar size three months ago. The company was previously (at SoftBank's urging) spending aggressively in an attempt to narrow Verizon/AT&T's 4G coverage leads.
    • Though its FQ2 numbers are generally downbeat, Sprint asserts the price cuts and promos launched since Marcelo Claure took over as CEO are bearing fruit. Postpaid phone gross adds rose Y/Y in September, the first time they did so in 2014 - the iPhone 6 launch likely helped. Sprint also claims its postpaid phone net losses fell by 60% during the month.
    • S -6.5% AH. FQ2 results, guidance/details
  • Nov. 3, 2014, 4:30 PM
    • Not counting transactions, Sprint (NYSE:S) lost 272K postpaid subs in FQ2, lowering its total base to 29.5M. The loss is bigger than FQ1's 181K, and points to further share loss to T-Mobile, Verizon, and AT&T.
    • 35K prepaid subs were added, a turnaround from FQ1's 542K decline. The base stands at 14.8M. Wholesale/affiliate net adds totaled 827K, better than FQ1's 530K and growing the base to 9.7M.
    • Postpaid phone net losses totaled 500K, more than offsetting 261K (lower-ARPU) tablet net adds. Other device net losses amounted to 33K. Postpaid churn was 2.18%, up from 2.05% in Q2 and 1.99% a year ago. ARPU fell to $60.58 from $62.07 in Q2 and $64.24.
    • Wireless service revenue fell 5% Y/Y to $6.76B. Equipment revenue rose 46% to $1.04B. With the help of cost cuts, adjusted EBITDA margin rose 180 bps to 18.6%, driving a 14% increase in wireless adjusted EBITDA to $1.37B.
    • Wireline revenue fell 19% Y/Y to $708M. The segment had just $27M in adjusted EBITDA.
    • Sprint (S) has slashed its full-year adjusted EBITDA guidance to $5.8B-$5.9B from $6.7B-$6.9B. The carrier cites both postpaid phone customer losses and (amid rising promotional activity) "increased selling costs." Net debt totaled $27B at quarter's end.
    • The selloff Sprint has seen since its FQ1 report appears to be limiting Sprint's post-earnings decline.
    • FQ2 results, PR
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  • Nov. 3, 2014, 4:06 PM
    • Sprint (NYSE:S): FQ2 EPS of -$0.19 misses by $0.13.
    • Revenue of $8.5B (+9.7% Y/Y)
    • Shares -7.9%.
    • Press Release
  • Nov. 2, 2014, 5:30 PM
  • Oct. 24, 2014, 1:16 PM
    • The FCC's Incentive Auction, which will auction off a giant chunk of low-frequency (600 MHz.) spectrum historically used for TV broadcasts, is now set for early 2016 instead of mid-2015.
    • The agency cites legal challenges from broadcasters, as well as the auction's complexity and "the need for all auction participants to have certainty well in advance."
    • A recent FCC study (.pdf) meant to appease broadcasters estimated the auction could raise $45B. Sprint (S -0.1%) and T-Mobile (TMUS +0.1%), whose rural and in-building coverage has suffered from a dearth of low-frequency spectrum, are expected to spend aggressively.
    • AT&T (T +0.1%) and Verizon (VZ +1%) are also expected to bid heavily, though the FCC plans to limit their purchases on account of their already-massive low-frequency assets. AT&T has said it plans to spend at least $9B.
    • Dish (DISH +1.4%), which has a large chunk of high-frequency spectrum it's still trying to find a use for, plans to participate as well.
  • Oct. 14, 2014, 4:00 PM
    • A month after launching a $20/month iPhone 6 leasing plan to go with an iPhone-specific $50/month unlimited voice/text/data plan, Sprint (S +2.4%) has begun offering existing customers who take up an iPhone lease a $15/month "Loyalty Service Credit."
    • The promo, available until Jan. 15, lasts as long as customers have an active lease and a qualifying service plan. It cuts the effective lease rates for the iPhone 6 and 6 Plus to $5/month and $10/month, respectively. After two years, users can trade in their iPhone for a new model, buy it, keep leasing it, or return the device and terminate service.
    • New CEO Marcelo Claure has unveiled several new price plans and promos since taking charge, as his company tries to halt many quarters of share losses to Verizon, AT&T, and (more recently) T-Mobile. A data promo was launched a couple weeks ago.
    • The iPhone 6 promo might also be aimed at taking a bite out of Sprint's heavy iPhone purchase obligations.
  • Oct. 3, 2014, 4:13 PM
    • Making good on remarks from new CEO Marcelo Claure, Sprint (S) has begun a new "workforce reduction plan" set to be mostly completed by the end of October. A $160M FQ2 (Sep. quarter) charge is expected.
    • Sprint adds "additional material charges associated with future labor reductions may occur in future periods." The carrier has been steadily losing postpaid and prepaid share in recent quarters.
    • Back in March, Sprint announced it was shutting down 55 stores and 150 service/repair centers.
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  • Oct. 2, 2014, 2:42 AM
    • The FCC is prepping its upcoming auction of frequencies known as AWS-3, scheduled to begin on Nov. 13. The auction is expected to raise at least $10B and will include airwaves previously occupied by multiple federal users.
    • A total of 80 entities submitted initial applications, including Dish Network (NASDAQ:DISH) and three of the four largest U.S. wireless carriers - Verizon (NYSE:VZ), AT&T (NYSE:T) and T-Mobile (NYSE:TMUS).
    • Sprint (NYSE:S) is planning sit out on the auction to save firepower for a major sale of low-frequency airwaves scheduled for next year.
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  • Sep. 12, 2014, 10:14 AM
    • Apple's (AAPL +0.1%) iPhone 6 Plus is now on backorder and not available to ship for 3-4 weeks in the U.S., judging by shipment quotes after the device went on sale after midnight.
    • The iPhone 6 Plus, the larger of the two iPhone 6 models offered, is showing a shipment time of 3-4 weeks rather than delivery on the first day of sale, Sept. 19th, for the iPhone 6.
    • Also, BGR reports that iPhone 6 Plus units through AT&T (T -0.4%) will now ship in 21-28 business days, Verizon's (VZ -0.6%) models are backordered until Oct. 7 (for 64 GB) or Oct. 14 (16 GB and 128 GB), and Sprint (S +7.3%) says all of its shipments are currently delayed.
    • Worldwide demand also is said to be high for the Plus, with customers in France and the U.K. saying the larger iPhone has sold out.
    • AAPL is expected to announce next weekend the total initial sales results for the first three days of availability.
  • Sep. 12, 2014, 9:12 AM
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  • Sep. 12, 2014, 7:46 AM
    • Impressed with management changes at Sprint (NYSE:S) and seeing the stock as a long-term investment opportunity, Cowen upgrades to Outperform with $8 price target.
    • In other news, Sprint plans to offer the new iPhones beginning on Sept. 19 and announces the iPhone for Life Plan, allowing customers to get a new iPhone for $20 per month for 24 months and the guarantee of a new device every two years.
    • Shares +2.4% premarket after yesterday's 6.8% gain.
    • Previously: Sprint on the move as Claure addresses conference
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  • Sep. 11, 2014, 11:44 AM
    • "We're implementing a culture of must-have and nice-to-have," new Sprint (S +5%) CEO Marcello Claure tells the audience (webcast) at the Goldman Communacopia Conference. "We have to focus on must-have and nice-to-have will have to go."
    • Everything is on the table, he says, and "some [managers] will make it and some won't."
    • The advice he got upon becoming CEO of a public company for the first time was not to change anything for the first 100 days, "but I just couldn't help myself," and Sprint overhauled its offerings on day 4.
    • Previously: Claure: Sprint to slash prices, cut more jobs
  • Sep. 2, 2014, 6:40 AM
    • SoftBank (OTCPK:SFTBY) says it will begin selling a humanoid robot named "Pepper", which is equipped with a laser sensor and 12 hours of battery life, at Sprint (NYSE:S) stores in the U.S. by next summer.
    • The robot was originally targeted at families and the elderly before getting attention for business use since being unveiled in June.
    • SoftBank has developed Pepper with an open platform operating system, allowing customization for use in construction, health care and entertainment industries.
  • Aug. 21, 2014, 1:31 PM
    • Three days after launching new shared data plans (along with big short-term promotions), Sprint (S +1%) has rolled out a $60/month individual plan that provides unlimited data to go with unlimited voice/text. Like the shared data plans, Sprint's offering requires users to forgo smartphone subsidies.
    • Sprint notes the individual plan is $20/month cheaper than a comparable T-Mobile (TMUS -1.1%) unlimited plan. For $60/month, T-Mobile offers individuals 3GB of data to go with unlimited voice/text. AT&T and Verizon don't offer unlimited data.
    • Meanwhile, in a PR titled "T-Mobile Urges Its Customers to Rescue Sprint Customers," T-Mobile states it will give both a new customer and an existing customer unlimited data for a year, when the latter gets the former to sign up. Those already on unlimited plans will get $10/month in credit for 12 months.
    • Sprint lost 181K core platform postpaid subs in Q2, while T-Mobile (aided by aggressive pricing and promotions) posted 908K branded postpaid net adds. Sprint shares are down 23% since reports emerged on Aug. 5 the carrier is abandoning its efforts to acquire T-Mobile.
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Company Description
Sprint Corp is a communications company offering wireless and wireline communications products and services to individual consumers, businesses, government subscribers and resellers.