The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sprint Nextel met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share expanded.
Margins dropped across the board.
Sprint Nextel logged revenue of $8.72 billion. The 24 analysts polled by S&P Capital IQ foresaw revenue of $8.69 billion. GAAP sales were 5.1% higher than the prior-year quarter's $8.30 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at -$0.40. The 16 earnings estimates compiled by S&P Capital IQ averaged -$0.36 per share on the same basis. GAAP EPS were -$0.43 for Q4 compared to -$0.31 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 quarter, gross margin was 37.9%, 710 basis points worse than the prior-year quarter. Operating margin was -5.0%, 520 basis points worse than the prior-year quarter. Net margin was -14.9%, 370 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.74 billion. On the bottom line, the average EPS estimate is -$0.29.
Next year's average estimate for revenue is $35.35 billion. The average EPS estimate is -$1.07.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,965 members out of 2,408 rating the stock outperform, and 443 members rating it underperform. Among 446 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 344 give Sprint Nextel a green thumbs-up, and 102 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sprint Nextel is hold, with an average price target of $3.87.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.