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

Earnings calendar for the week of May 17

Benchmark stock indexes pared their recent gains early this week amid elevated inflation concerns, but regained a part of the momentum later aided by recovery in tech stocks. The Dow

Alibaba (BABA): The good and the bad from the Q4 earnings report

Shares of Alibaba Group (NYSE: BABA) have dropped 10% since the beginning of the year. The company reported mixed results for the fourth quarter of 2021 a day ago, with

Walt Disney (DIS) is focused on reopening, to put up a better show this year

With some of its parks and resorts either closed or operating at reduced capacity even more than a year after the virus outbreak, The Walt Disney Company (NYSE: DIS) is

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top