The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Sprint Nextel met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share grew.
Margins dropped across the board.
Sprint Nextel notched revenue of $8.76 billion. The 25 analysts polled by S&P Capital IQ predicted sales of $8.81 billion on the same basis. GAAP reported sales were 5.2% higher than the prior-year quarter's $8.33 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 -$0.25. The 17 earnings estimates compiled by S&P Capital IQ averaged -$0.40 per share. GAAP EPS were -$0.26 for Q3 compared to -$0.10 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 41.9%, 280 basis points worse than the prior-year quarter. Operating margin was -2.6%, 510 basis points worse than the prior-year quarter. Net margin was -8.8%, 520 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $9.00 billion. On the bottom line, the average EPS estimate is -$0.49.
Next year's average estimate for revenue is $35.39 billion. The average EPS estimate is -$1.41.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,037 members out of 2,513 rating the stock outperform, and 476 members rating it underperform. Among 432 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 327 give Sprint Nextel a green thumbs-up, and 105 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sprint Nextel is outperform, with an average price target of $5.20.
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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.
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