Sprint Corp Climbs On Improved Outlook, Johnson & Johnson Sales Miss

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Sprint Corp (NYSE:S) and Johnson & Johnson (NYSE:JNJ) released their latest earnings reports before opening bell this morning. Sprint posted losses of 21 cents per share and sales of $8.11 billion, compared to the consensus estimates of $8.25 billion in sales and losses of 24 cents per share. In last year’s third fiscal quarter, the mobile carrier posted losses of 60 cents per share and revenue of $7.89 billion.

Johnson & Johnson posted adjusted earnings of $1.44 per share on revenue of $17.81 billion. Analysts had been expecting earnings of $1.42 per share and sales of $17.88 billion. In last year’s fourth quarter, the consumer products company reported sales of $8.25 billion.

Johnson & Johnson’s outlook disappoints

Johnson & Johnson’s net earnings were $1.15 per share, compared to last year’s 89 cents per share. The company said domestic sales declined 8%, but currency exchange had a negative impact of 6.8%. International sales fell 11.7%, including operational growth of 1.2% and a 12.9% negative impact from foreign currencies.

“Johnson & Johnson delivered strong underlying growth in 2015, driven by the performance of our Pharmaceutical business and iconic Consumer brands,” said Chairman and CEO Alex Gorsky in a statement.  “As we enter 2016, our core business is very healthy, and the recent decisive actions we’ve taken in support of each of our businesses position us well to drive sustainable long-term growth, faster than the markets we compete in.”

The company guided for revenue of between $70.8 billion and $71.5 billion for 2016, which came up short of the consensus estimate of $71.94 billion. Johnson & Johnson expects adjusted earnings of between $6.43 and $6.58 per share.

Johnson & Johnson shares edged higher by 0.06% to $96.50 per share in premarket trading this morning.

Sprint soars on guidance

Sprint’s adjusted EBITDA was $1.9 billion. The company reported almost an $800 million reduction in expenses year to date. The Sprint platform added 501,000 postpaid subscribers, an improvement of 471,000 year over year. The company set a new record for postpaid net ports and was net port positive for the fourth quarter in a row. The Sprint platform recorded 366,000 postpaid phone net additions, compared to last year’s 205,000 postpaid phone net losses. The postpaid churn rate was the lowest ever in the third quarter at 1.62%.

The company also raised its adjusted EBITDA guidance for fiscal 2015 from a range of $6.8 billion to $7.1 billion to a range of $7.7 billion to $8 billion. For 2016 the preliminary estimate for adjusted EBITDA is between $9.5 billion and $10 billion.

Sprint shares climbed by as much as 17.13% to $2.94 per share in premarket trading this morning.

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