Sprint Corp (S) Posts Better Than Expected EPS, Gains Users


One stock which has been beaten down terribly over the last three months has been Sprint Corp (NYSE:S). The stock is down approximately 50% since late October as investors wonder when the company will finally be able to turn a profit.

This morning, although still not profitable, Sprint Corp (NYSE:S) provided investors with a glimmer of hope, beating analyst estimates for their fiscal third quarter EPS and revenue. The company reported a quarterly loss of $0.21, topping estimates of a loss of $0.26 cents by a 5 cent margin. Additionally they reported better than expected revenue of $52.48, compared with the $52.26 that analysts had predicted.

“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.”

The company also added 501,000 subscribers, missing analyst estimates of 521,000 by about 4%. Shares of Sprint Corp (NYSE:S) are up $0.34 or 13.55% in the pre-market this morning. The stock decreased 12.54% or $0.36 during the last trading session, hitting $2.51. Approximately 432,284 shares traded hands. S shares have declined 46.15% since June 19, 2015 and are currently downtrending. It has underperformed the S&P500 by 37.29%.

From a total of 13 analysts covering Sprint Nextel Corporation (NYSE:S) stock, 3 rate it a “Buy”, 1 a “Sell”, and 9 a “Hold”. This means that 23% of the ratings are positive. The highest target price is $32 while the lowest target price is $3. The mean of all analyst targets is $4.18 which is 66.53% above today’s ($2.51) stock price. Sprint Nextel Corporation was the topic of 22 analyst reports since July 24, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 23 with a “Sector Perform” rating. Vetr upgraded shares to a”Strong-Buy” rating and a $5.17 target share price in their report from a September 21. Keefe Bruyette & Woods downgraded S stock in a recent report from October 21 to a “Mkt Perform” rating. Zacks upgraded the rating on August 9. Zacks has a “Hold” rating and a $3.75 price target on shares. Finally, DA Davidson initiated the stock with a “Neutral” rating in a report they issued on an October 1.

The institutional sentiment increased to 0.88 in Q2 2015. It’s up 0.18, from 0.7 in 2015Q2. The ratio increased, as 48 funds sold all their Sprint Corp shares they owned while 75 reduced their positions. 34 funds bought stakes while 74 increased their total positions. Institutions now own 508.83 million shares which is 15.12% less than the previous share count of 599.46 million in 2015Q2.

Mig Capital Llc holds 5.23% of its total portfolio in Sprint Corp, equating to 5.65 million shares. Litespeed Management L.L.C. owns 9.44 million shares representing 4.47% of their total US portfolio. Moreover, Nevsky Capital Llp has 3.44% of their total portfolio invested in the company, equating to 5.20 million shares. The Hong Kong-based Parametrica Management Ltd has a total of 3.01% of their portfolio invested in the stock. Hoertkorn Richard Charles, a California-based fund reported 742,615 shares owned.

Since February 27, 2015, the stock had 11 insider buys, and 1 insider sale for a total of $713.68 million in net activity. Softbank Group Corp bought 14.53 million shares worth $60.60M. Jones Jaime sold 38,879 shares worth $183,548. Wunsch Charles R sold 121,411 shares worth $573,093. Euteneuer Joseph J bought 3,600 shares worth $18,180. The insider Hallock Jeffrey D sold 54,792 shares worth $288,819.

Sprint Corporation is a holding company. The company has a market cap of $11.39 billion. The Company, along with its subsidiaries is a wireless communications firm offering a range of wireless and wireline communications services and products. It currently has negative earnings. The Firm operates in two divisions: Wireless and Wireline.