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Will These Numbers from Sprint Nextel Be Good Enough for You?

By Seth Jayson – Updated Apr 10, 2017 at 1:48PM

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Checking expectations

Sprint Nextel (NYSE: S) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sprint Nextel's revenues will drop 0.0% and EPS will remain in the red.

The average estimate for revenue is $8.73 billion. On the bottom line, the average EPS estimate is -$0.29.

Revenue details
Last quarter, Sprint Nextel recorded revenue of $9.01 billion. GAAP reported sales were 3.2% higher than the prior-year quarter's $8.72 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.42. GAAP EPS were -$0.44 for Q4 versus -$0.43 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 37.2%, 70 basis points worse than the prior-year quarter. Operating margin was -3.1%, 70 basis points better than the prior-year quarter. Net margin was -14.7%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $35.06 billion. The average EPS estimate is -$0.76.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,026 members out of 2,493 rating the stock outperform, and 467 members rating it underperform. Among 448 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 347 give Sprint Nextel a green thumbs-up, and 101 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 $6.66.

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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 position in any of the stocks mentioned. 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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