{"id":57977,"date":"2018-02-03T08:02:39","date_gmt":"2018-02-03T08:02:39","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=57977"},"modified":"2018-02-03T08:02:39","modified_gmt":"2018-02-03T08:02:39","slug":"sprint-beats-on-quarterly-revenue-raises-outlook-shares-jump","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/sprint-beats-on-quarterly-revenue-raises-outlook-shares-jump.html","title":{"rendered":"Sprint beats on quarterly revenue, raises outlook; shares jump"},"content":{"rendered":"

Sprint beats on quarterly revenue, raises outlook; shares jump<\/span><\/strong><\/span><\/h2>\n

Sprint Corp reported quarterly revenue on Friday that beat analyst estimates, as the No. 4 U.S. wireless carrier raised its free cash flow outlook for the 2017 fiscal year.<\/span><\/p>\n

Shares rose 3.7 percent to $5.29 in early trading, a day after sliding 5.7 percent to their lowest in a year and a half.<\/span><\/p>\n

The company has sought to strengthen its balance sheet by cutting costs and mortgaging a portion of its airwaves and equipment, but industry analysts have raised concerns about how it can adequately fund network improvements after merger talks with rival T-Mobile US Inc ended last year.<\/span><\/p>\n

Sprint now expects $2.5 billion to $2.7 billion in operating income, up from its previous estimate of $2.1 billion to $2.5 billion. It expects adjusted free cash flow of $500 million to $700 million, compared to previous estimates of breaking even.<\/span><\/p>\n

\u201cWe think recent weakness in shares is reflective of lowered investor expectations, while in-line to slightly better financial results could provide some near-term relief,\u201d said Matthew Niknam, analyst at Deutsche Bank, in a research note.<\/span><\/p>\n

On the post-earnings conference call, Sprint Chief Executive Officer Marcelo Claure said Sprint would launch a mobile 5G network in the United States by the first half of 2019.<\/span><\/p>\n

The company is also looking for ways to reduce the number of executives at the top, he said. Sprint cut costs by about $260 million in the quarter, excluding $100 million of hurricane-related charges.<\/span><\/p>\n

Claure said \u201cbecoming a wholly owned subsidiary of (SoftBank Group Corp) could be a possibility\u201d but that the decision would be up to SoftBank Chief Executive Masayoshi Son. Japan\u2019s SoftBank owns a majority of Sprint and has been increasing its stake.<\/span><\/p>\n

For the quarter, Sprint reported net additions of 184,000 phone subscribers who pay a monthly bill, compared to additions of 368,000 a year earlier.<\/span><\/p>\n

Net operating revenue in the third quarter ended Dec. 31 was $8.24 billion, down from $8.55 billion a year earlier.<\/span><\/p>\n

Sprint reported quarterly net income of $7.16 billion, or $1.79 per share, due to the impact of federal tax reforms, after a loss of $479 million, or 12 cents per share, a year earlier.<\/span><\/p>\n

Excluding the impact of tax cuts signed into law by U.S. President Donald Trump late last year, net income was 3 cents a share.<\/span><\/p>\n

According to Thomson Reuters I\/B\/E\/S, analysts had expected revenue of $8.15 billion and a net loss of 4 cents a share.<\/span><\/p>\n

Source:-\u00a0https:\/\/www.reuters.com\/article\/us-sprint-corp-results\/sprint-beats-on-quarterly-revenue-raises-outlook-shares-jump-idUSKBN1FM1PI<\/span><\/p>\n

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