The 10-second takeaway
For the quarter ended June 30 (Q2), Sprint Nextel beat slightly on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP loss per share increased.
Margins dropped across the board.
Sprint Nextel booked revenue of $8.84 billion. The 27 analysts polled by S&P Capital IQ anticipated revenue of $8.73 billion on the same basis. 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.
EPS came in at -$0.40. The 19 earnings estimates compiled by S&P Capital IQ averaged -$0.38 per share. GAAP EPS were -$0.46 for Q2 versus -$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 quarter, gross margin was 43.3%, 150 basis points worse than the prior-year quarter. Operating margin was -5.0%, 600 basis points worse than the prior-year quarter. Net margin was -15.5%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.76 billion. On the bottom line, the average EPS estimate is -$0.41.
Next year's average estimate for revenue is $35.16 billion. The average EPS estimate is -$1.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,998 members out of 2,460 rating the stock outperform, and 462 members rating it underperform. Among 404 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 297 give Sprint Nextel a green thumbs-up, and 107 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 $3.42.
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