Key Takeaways from Stellar Sprint Corp (S) Numbers
Close on the heels of announcing a 7% slash to its workforce, Sprint Corp (NYSE:S) announced an upbeat forecast for the rest of the fiscal year. Though the company’s revenue fell short of the Wall Street analysts’ expectations, its loss per share was narrower than the predicted level. The combination of favorable results and outlook has boosted the investors’ sentiments towards the stock to lift it by more than 18%.
Net Postpaid Connections Addition
Sprint Corp (NYSE:S) said that it was able to add 501,000 net postpaid subscribers in the third quarter. That was significantly higher than the 30,000 additions witnessed in the year-ago quarter. However, its prepaid connections witnessed a fall of 491,000 in the same period. The company was keen to report subscribers’ growth while reducing its expenses. As a result, the telecom service provider believed that it could turn to operational profits in few weeks time.
The fourth-biggest telecom firm said that it closed the quarter with 30.9 million postpaid subscribers. The company indicated that its churn rate of postpaid dipped to 1.62% from 2.3% in the previous year quarter. It was also the lowest ever third quarter churn rate in the postpaid segment.
Sprint Corp (NYSE:S) has lifted its forecast for the fiscal year 2015. It comes on the heels of various cost-cutting measures that included 7% reduction in jobs. The company is now looking at operating income of $100 – $300 million, which was boosted from $50 – $250 million projected earlier by it. The telecom firm was expecting to achieve EBITDA of $9.5 – $10 billion in the fiscal year 2016.
For the third quarter, Sprint Corp (NYSE:S) suffered a loss of $836 million or a loss of 21 cents a share, which was smaller than a loss of $2.38 billion suffered in the year-ago quarter. However, it was better than the loss prediction of 25 cents a share by the Street. Its top line dipped nearly 10% to $8.11 billion trailing behind expectations of $8.23 billion. While equipment witnessed 16.3% downtick, service division suffered 8.1% drop.
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