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)
Tue, Aug. 4, 5:30 PM
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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, 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, 7:38 AM
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.
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."
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, 7:13 AM
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%.
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)
Wed, Apr. 22, 5:35 PM
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Tue, Feb. 24, 5:35 PM
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Tue, Feb. 10, 3:39 AM
- SoftBank (OTCPK:SFTBY) reported a sharp drop in its profit for the October-December quarter this morning, weighed down by the continuing struggles at Sprint (NYSE:S), the U.S. mobile operator it acquired in 2013.
- "Overall, SoftBank is doing well, but with Sprint...being in a tough situation, I think it will have a long battle to fight," said SoftBank's Chief Executive Masayoshi Son.
- The telecommunications giant posted FQ3 net income of ¥32.3B ($272.3M), down from ¥93.8B a year earlier.
Thu, Feb. 5, 8:57 AM
- With losses continuing, eyes at Sprint (NYSE:S) were on its subscriber situation, as the company gets further along into aggressive promotions like "cut your bill in half."
- Sprint (S) got back to postpaid subscriber growth in fiscal Q3 (as it previewed a month ago) with 30K net adds, postpaid gross adds were highest in three years -- and postpaid churn increased Q/Q to 2.3%.
- Postpaid upgrade rate highest on record at 11.5%, "illustrating a recommitment from existing customers." As it had noted, prepaid net adds of 410K on the platform. Wholesale net adds of 527K up 225K from prior year, and mainly driven by connected devices.
- As expected, postpaid ARPU of $58.90 is down -- both Y/Y (from $64.11) and sequentially (from $60.58). Prepaid ARPU of $27.12 is down sequentially (from $27.19) but up from prior year's $26.78.
- Free cash flow at -$1.83B, compared to prior year's -$2.84B.
- Adjusted EBITDA Margin was up Y/Y at 15.4% compared to 14.4%, but down from Q3's 19.9%. Adjusted EBITDA was $1.03B.
- The network is coming along: LTE coverage reached over 270M people -- 125M covered by 2.5 GHz deployment, and 800 MHz voice deployed nationwide.
- Shares now down 2% premarket.
- Press Release
Thu, Feb. 5, 7:35 AM
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