Sprint Corporation Shares Rising on Strong Earnings, Bold Guidance

Sprint (NYSE: S  ) just reported fourth-quarter results, lifting share prices as much as 8.1% in early trading.

The third largest American telecom reported $9.1 billion in fourth-quarter revenue, a 1.5% year over year increase and ahead of Wall Street's $9.0 billion sales estimate. Sprint saw a $0.26 GAAP net loss per share, up from a $0.44 loss per share a year ago. Analysts were expecting a larger $0.34 loss per share.

Sprint added 682,000 subscribers in the quarter, including 58,000 postpaid customers on contract and 322,000 prepaid lines. Ninety-five percent of all postpaid phones sold in the fourth quarter were smartphones. The company reached a record high of 53.9 million total subscribers at the end of the quarter.

Looking ahead, Sprint expects adjusted EBITDA of roughly $6.6 billion in 2014, up from $2.4 billion in fiscal year 2013. Capital expenses will more than double, from $3.6 billion to approximately $8 billion.

This heavy infrastructure investment will mainly support the new Sprint Spark network, a triple-band LTE platform that promises network speeds of up to 150 megabits per second. Spark is available in 14 major markets today; Sprint hopes to cover more than 100 urban areas over the next three years.

"We are building a foundation for future success," said Sprint CEO Dan Hesse.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2834464, ~/Articles/ArticleHandler.aspx, 4/24/2014 11:53:51 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement