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Sprint Nextel's Loud and Clear: Fool by Numbers

On Feb. 28, Sprint Nextel (NYSE: S  ) released earnings for the fourth quarter ended Dec. 31.

  • Revenue rose by 6.7% to $10.4 billion, thanks to 9% growth in revenue from the wireless segment.
  • Revenue from the long distance segment, which accounts for 16% of total sales, fell by 2% year over year. However, adjusted operating income for this segment grew 35%.
  • The company's free cash flow declined by 39.5% to $3.4 billion, led by increased capital spending on accelerated wireless network deployments. For the 2007 fiscal year, Sprint Nextel plans to devote roughly $8 billion for aggressive wireless capital investments, along with rebranding and its long-distance segment.
  • Is Sprint Nextel in your top five in Motley Fool CAPS, our free interactive stock database? With only a two-star rating, it may not be favored by many. Competitors like Verizon Communications (NYSE: VZ  ) and AT&T (NYSE: T  ) have a three-star rating. And there are lots of other companies with four and five stars supported by user commentary, awaiting your outperform or underperform call.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005






Earnings from Continued Operations




EPS from Continued Operations




Diluted Shares




*Earnings from continued operations doesn't include profits from Embarq, which was spun off on May 17, 2006.

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005


Gross Margin




Operating Margin




Net Margin




*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights


Q4 2006

Q4 2005


Cash + ST Invest.




Accounts Rec.









Q4 2006

Q4 2005


Accounts Payable




Long-Term Debt




Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005


Cash From Ops.




Capital Expenditures




Free Cash Flow




Find out why Fools always follow the money.

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.

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