Groupon Inc Tanks On Earnings, Sprint Corp Falls On Bigger-Than-Expected Loss

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Groupon and Sprint released their latest earnings reports before opening bell this morning. Groupon reported adjusted earnings of 1 cent per share on $673.6 million in revenue, compared to the consensus estimates of $722 million and 4 cents per share in adjusted losses. In last year’s first quarter, the company posted $698.4 million in revenue.

Sprint posted losses of 7 cents per share on $8.54 billion in revenue. Analysts had been looking for losses of 4 cents per share and $7.9 billion in revenue. In the year-ago quarter, the mobile carrier posted losses of 14 cents per share on $8.07 billion in revenue.

Groupon shares tank as billings fall

Groupon’s GAAP losses narrowed to 4 cents per share from 8 cents per share a year ago. Adjusted EBITDA grew to $44.8 million from $31.5 million in the year-ago quarter. Gross billings fell 1% year over year to $1.36 billion, while global units sold fell 3% to 45.7 million. North America units were flat year over year with growth in the high-single digits in Local and declines in Goods. International units fell 9%.

Groupon added 500,000 net new customers in North America to bring the regional total of active customers to 31.6 million. International active customers were flat sequentially at 16.7 million. The company maintained its full-year gross profit guide of $1.3 billion to $1.35 billion and its adjusted EBITDA outlook of $200 million to $240 million.

Shares of Groupon plunged by as much as 10.75% to $3.57 in premarket trades.

Sprint records most postpaid phone adds in years

By Sprint Nextel [Public domain], via Wikimedia Commons
Fourth quarter net losses amounted to $283 million, while operating income was $470 million and adjusted EBITDA was $2.7 billion. Adjusted EBITDA grew 24% year over year to $2.7 billion in the fourth quarter.

The fiscal 2016 net loss was $1.2 billion or 30 cents per share, compared to 2015’s net losses of $2 billion or 50 cents per share, while the operating income was $1.8 billion and adjusted EBITDA neared $10 billion. Sprint said it was the highest operating income in a decade and the highest adjusted EBITDA in nine years. The company cut its cost of service and selling, general and administrative expenses by $2.1 billion in 2016.

Sprint records most postpaid phone adds in years

Sprint added 930,000 postpaid phones in all of 2016, which was more than double the number it added in fiscal 2015. During the fourth quarter, the company added 42,000 postpaid phones, marking the tenth quarter in a row with growth on a year over year basis. Sprint also returned to prepaid customer growth by adding 180,000 net prepaid subscribers during the fourth quarter. Total net adds during the fourth quarter were 187,000, including net losses of 118,000 postpaid phones, 180,000 net prepaid additions and 125,000 wholesale and affiliate net adds.

For fiscal 2017, Sprint expects adjusted EBITDA to be between $10.7 billion and $11.2 billion and operating income to be between $2 billion and $2.5 billion.

Shares of Sprint dipped in premarket trading, falling by as much as 1.87% to $8.90 after this morning’s earnings release.

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