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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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. The Motley Fool has no positions in the stocks mentioned above. 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.