Market Overview

Sprint Shares Retrace Monday's Losses Following Strong Earnings, Outlook

Share:

Shares of Sprint Corp (NYSE: S) were trading higher by more than 15 percent early Tuesday morning at $2.90 following the release of the company's third quarter results and encouraging outlook.

Shares briefly traded above the $3.00 mark on Monday before heavy selling in the afternoon session and closed the day at $2.52.

Sprint lost $0.21 per share in the third quarter on revenue of $8.1 billion. The company reported an operating loss of $197 million and Adjusted EBITDA of $1.9 billion in the quarter.

Sprint noted that its quarterly performance was driven by 366,000 phone net additions, marking the strongest quarterly performance in three years and the second consecutive quarter of growth. The company's quarter was also marked by the lowest-ever churn rate in 12 years of 1.62 percent.

Sprint also revised its full year fiscal 2015 Adjusted EBITDA outlook from $6.8 billion to $7.1 billion to a new range of $7.7 billion to $8 billion. Management raised its full year operating income guidance from $(250 million) to $(50 million) to a new range of $100 million to $300 million.

Sprint also guided its preliminary fiscal 2016 Adjusted EBITDA to a range of $9.5 billion to $10 billion.

"It's clear from our quarterly results that we are making great progress on achieving our goals," said Sprint CEO Marcelo Claure. "Revenue has stabilized, costs are coming out faster than expected, postpaid phone net additions were the highest in three years, postpaid churn was the lowest-ever for a third quarter, and the network is performing at best-ever levels."

Posted-In: Marcelo Claure Sprint Sprint Earnings Telecommunication CompaniesEarnings News Guidance Movers

 

Related Articles (S)

View Comments and Join the Discussion!

A New Way To Advertise

A Different Spin On The Traditional Bond ETF