On Feb. 28, Sprint Nextel
- 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 |
Change |
|
|---|---|---|---|
|
Sales |
$10,444 |
$9,792 |
6.7% |
|
Earnings from Continued Operations |
$261 |
$5 |
5,120.0% |
|
EPS from Continued Operations |
$0.09 |
$0.00 |
N/A |
|
Diluted Shares |
2,916.2 |
2,979.4 |
(2.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
59.3% |
57.9% |
1.4 |
|
Operating Margin |
5.5% |
3.0% |
2.5 |
|
Net Margin |
2.5% |
0.1% |
2.4 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,061 |
$10,666 |
(80.7%) |
|
Accounts Rec. |
$4,595 |
$4,166 |
10.3% |
|
Inventory |
$1,176 |
$776 |
51.5% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,463 |
$3,562 |
(2.8%) |
|
Long-Term Debt |
$21,011 |
$19,969 |
5.2% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$10,958 |
$10,679 |
2.6% |
|
Capital Expenditures |
$7,556 |
$5,057 |
49.4% |
|
Free Cash Flow |
$3,402 |
$5,622 |
(39.5%) |
Find out why Fools always follow the money.
Related Foolishness:
- Intel Wins a Sprint
- Sprinting to the Wrong Customers
- Very Verizon: Fool by Numbers
- AT&T's Wireless Ways Win: Fool by Numbers
Small caps. Large caps. Fool CAPS! The Motley Fool's investor-intelligence community rates thousands of stocks to help you improve your own stock selections. Join today for a fun new way to research stocks.
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 Fool.com 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.
