Categories Earnings, Technology

Sprint stock gains after Q1 results beat estimates

Telecommunications giant Sprint Corp. (S), which recently entered into a merger agreement with rival T-Mobile (TMUS), Wednesday said its first-quarter earnings declined after a slump in demand for services dragged revenues. The results, meanwhile, exceeded Wall Street estimates.

The company posted net income of $176 million or $0.04 per share for the first quarter, continuing the recovery that started last year and surpassing analysts’ forecast. In the same quarter last year, earnings were $206 million or $0.05 per share.

Sprint Q1 earnings beat estimates
Sprint Q1 2018 Earnings infographic

Net revenues dropped modestly to $8.1 billion during the three-month period, hurt mainly by a marked fall in service revenues. That was partially offset by a 35% increase in equipment rental revenues to $1.2 billion.

Postpaid phone net additions were 87,000 in the first quarter, broadly in line with the year-ago period, while prepaid phone net additions plunged to 3,000. Prepaid churn was the lowest in more than three years.

“By balancing growth and profitability, we were able to grow wireless service revenue sequentially, continue to add retail phone customers, generate net income for the third consecutive quarter, and improve the network,” said Sprint CEO Michel Combes.

Postpaid phone net additions were broadly in line with the year-ago period, while churn was the lowest in more than three years

For fiscal 2018, the management expects adjusted EBITDA in the range of $12.0 billion to $12.5 billion, which is slightly above the previous estimate. Full-year cash capital expenditures, excluding leased devices, are estimated to be between $5 billion and $6 billion.

Of late, Sprint has been focused on its initiative to deliver 5G technology in major cities across the country. The first mobile 5G network is expected to be launched in the first half of 2019.

RELATED: T-Mobile reports better than expected customer adds

Among competitors, AT&T (T) and Verizon (VZ) last week reported better-than-expected earnings for their most recent quarter. T-Mobile US (TMUS) is scheduled to report second-quarter results today after the market closes.


Shares of Sprint lost 38% over the past twelve months. The stock, which closed the last trading session lower, recovered in the premarket trading following the earnings announcement.

RELATED: Verizon Q2 profit rises

RELATED: Sprint Q1 2018 earnings call transcript

Most Popular

Target Corp posts strong results in Q4: Infographic

Target Corporation (NYSE: TGT) reported fourth-quarter 2020 financial results before the opening bell today. The department store chain reported Q4 revenue of $28.3 billion, up 21% year-over-year and higher than

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Add Comment
Viewing Highlight