Sprint Nextel Earnings Preview: Analysts Expect Higher EPS, Revenue

Sprint Nextel (NYSE: S) releases its next round of earnings this Wednesday, October 26, 2011. Here is Benzinga's everything-that-matters guide for this Wednesday's third quarter earnings announcement.

Earnings and Revenue:

Ahead of the company's earnings announcement, analysts are expecting a loss of 22 cents/share and revenues of $8.38 billion. Sprint Nextel's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a loss of 30 cents/share on revenues of $8.15 billion. We'll have to wait for Wednesday to see if Sprint Nextel narrows its losses and reports higher revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Sprint Nextel were trading at $2.77 as of October 21, 2011. Since January 1st, shares of Sprint Nextel have declined 34.5%. For a full 12 months, the return has declined by 35.6%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Sprint Nextel is a Hold. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Sprint Nextel compares to rivals in the same sector? Here are a few of the company's peers.

• Clearwire (NASDAQ: CLWR): Hold with a -$0.71 recent quarter EPS
• CenturyLink (NYSE: CTL): Moderate Buy with a $0.64 recent quarter EPS
• Leap Wireless International (NASDAQ: LEAP): Hold with a -$0.85 recent quarter EPS
• NTELOS Holdings (NASDAQ: NTLS): Moderate Buy with a $0.30 recent quarter EPS

The diversified communications systems company's industry has seen price/earnings growth of 1.7% during the current fiscal year.

Finally, a description of the company's main areas of operation: Sprint Nextel offers a range of wireless and wireline communications products and services.

Take Action:

That's your advanced look at Sprint Nextel's upcoming earnings numbers -- be ready to take quick action if the company's report contains any surprises. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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