Sprint Nextel (NYSE: S ) is expected to report Q3 earnings on Oct. 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sprint Nextel's revenues will grow 5.8% and EPS will remain in the red.
The average estimate for revenue is $8.81 billion. On the bottom line, the average EPS estimate is -$0.40.
Last quarter, Sprint Nextel logged revenue of $8.84 billion. GAAP reported sales were 6.4% higher than the prior-year quarter's $8.31 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at -$0.40. GAAP EPS were -$0.46 for Q2 against -$0.28 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 43.3%, 150 basis points worse than the prior-year quarter. Operating margin was 3.8%, 280 basis points better than the prior-year quarter. Net margin was -15.5%, 530 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $35.39 billion. The average EPS estimate is -$1.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,037 members out of 2,516 rating the stock outperform, and 479 members rating it underperform. Among 431 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 327 give Sprint Nextel a green thumbs-up, and 104 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sprint Nextel is outperform, with an average price target of $3.43.