The Good and Bad of Sprint Corporation's Earnings

Sprint (NYSE: S  ) reported mixed news in its earnings today, though investors seem to have decided that the good outweighed the bad, as the stock was up over 11% by market close. Cost improvements allowed it to reduce its net loss this quarter to $151 million, and revenue came in above expectations. Operating income was also at its highest point in 7 years. The bad news however was that the company saw a net loss of about 470k wireless subscribers this quarter, compared to a significant gain in the same quarter last year.

In this segment from Tuesday's Tech Teardown, host Erin Kennedy and Motley Fool tech and telecom bureau chief Evan Niu discuss some of the contributing factors to the net subscriber loss, and they also take a look at Sprint's "Framily" initiative. The plan works like a normal family plan, but allows customers to include friends as well, up to ten people, which allows customers increased access to cost savings normally only available through family members. The plan added 1 million subscribers for Sprint in its first 40 days, and is now up to nearly 3 million. Evan discusses why the plan has been a big win for subscribership, but has also had a negative impact on average revenue per user.

Are you ready to profit from this $14.4 trillion revolution?
Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure-play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

Read/Post Comments (0) | Recommend This Article (1)

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2936093, ~/Articles/ArticleHandler.aspx, 8/31/2015 2:05:10 PM

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...

Evan Niu

Evan is a Senior Technology Specialist at The Motley Fool. He was previously a Senior Trading Specialist at a major discount broker. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.

Today's Market

updated Moments ago Sponsored by:
DOW 16,539.69 -103.32 -0.62%
S&P 500 1,976.81 -12.06 -0.61%
NASD 4,799.00 -29.32 -0.61%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 1:48 PM
S $5.22 Up +0.03 +0.58%
Sprint CAPS Rating: **