Sprint Nextel Corporation (S) Q3: Sells 1.5M iPhones, Loses $767M

0
Sprint Nextel Corporation (S) Q3: Sells 1.5M iPhones, Loses $767M
By Sprint Nextel [Public domain], via Wikimedia Commons

Sprint Nextel Corporation (NYSE:S), the third- largest U.S. wireless carrier, reported third quarter losses of $767 million, or 26 cents a share, compared with a loss of $301 million, or 10 cents, in the year-ago quarter. Revenue gained 5.2 percent to $8.76 billion. Analysts were expecting a loss of 42 cents a share on revenue of $8.81 billion.

Sprint Nextel Corporation (S) Q3: Sells 1.5M iPhones, Loses $767M

Wireless

Investing in the Next Generation of Emerging and Frontier Markets with Maurits Pot

Yarra Square Investing Greenhaven Road CapitalValueWalk's Raul Panganiban with Maurits Pot, Founder and CEO of Dawn Global. Before this he was Partner at Kingsway Capital, a frontier market specialist with over 2 billion AUM. In the interview, we discuss his approach to investing and why investors should look into frontier and emerging markets. Q2 2021 hedge fund letters, conferences and Read More


According to the report of Nomura equity research, Sprint Nextel Corporation (NYSE:S) lost 456k total postpaid subscribers, worse than their analysts estimate of 295k and consensus of 314k. Sprint Nextel Corporation (NYSE:S) recaptured 59% of disconnecting iDEN subscribers, leaving organic CDMA net losses of 106k versus analysts’ estimate of 10k losses. Total postpaid churn was 2.09%, just above research firm’s consensus-matching estimate of 2.00%. Sprint Nextel Corporation (NYSE:S) activated 1.5mn iPhones during the quarter, with an industry-leading 40% of those going to new subscribers.

Wireless service revenue of $7.3bn met analysts’ estimate and grew 5.7% y/y. Wireless postpaid ARPU was $61.18, in line with  analysts $61.11 estimate. Normalized Wireless EBITDA of $1.1bn and service margin of 15.3% were well ahead of analysts $983mn / 13.5% estimates and consensus of $996mn / 13.7%, respectively. Excluding the dilutive impact of Network Vision, which is expected to be heard about on the call, Wireless service EBITDA margins likely neared 18%, equal to 3Q11 despite the additional cost of 1.5mn iPhones this quarter.

Wireline

Wireline revenue was $939mn vs. analysts estimate of $970mn and consensus of $967mn. Wireline EBITDA and margin were $158mn and 16.8%, respectively, above analysts and consensus margin estimate of 15%.

According to BAML,  Sprint’s results are supportive of their beat and raise thesis, and post-paid metrics were better than the growing wave of skepticism following strong Verizon Communications Inc. (NYSE:VZ) results.

Sprint Nextel Corporation (NYSE:S) shares rose 4 cents to $5.66 in pre-market trading.

No posts to display