** charts before earnings **
** charts after earnings **
Sprint beats by $0.05, misses on revs :
- Reports Q3 (Dec) loss of $0.21 per share, $0.05 better than the Capital IQ Consensus of ($0.26); revenues fell 9.7% year/year to $8.11 bln vs the $8.21 bln Capital IQ Consensus.
Key Metrics
- Total net additions were 491,000 compared to 967,000 in the prior year quarter.
- Postpaid net additions of 501,000 compared to 30,000 in the prior year quarter.
- Prepaid net losses of 491,000 compared to net additions of 410,000 in the prior year quarter.
- Wholesale and affiliate net additions of 481,000 compared to 527,000 in the prior year quarter .
Outlook
- As a result of accelerated cost reductions, the company is raising its guidance for fiscal year 2015 Adjusted EBITDA from its previous expectation of $6.8 billion to $7.1 billion to a range of $7.7 billion to $8 billion.
- The company is also raising its guidance for fiscal year 2015 operating income from its previous expectation of an operating loss of $50 million to $250 million to operating income of $100 million to $300 million.
- The company continues to expect fiscal year 2015 cash capital expenditures to be approximately $5 billion.
- The company's preliminary estimate for fiscal year 2016 Adjusted EBITDA is approximately $9.5 billion to $10 billion.
Cost Cutting
- Sprint remains on track to exceed its cost reduction target for fiscal 2015 and has realized a nearly $800 million reduction in cost of service and selling, general, and administrative expenses year-to-date, including $500 million in the third quarter. Sprint continues to progress toward a sustainable reduction of $2 billion or more of run rate operating expenses exiting fiscal 2016 and expects approximately $1 billion of transformation program costs, which are expected to be split relatively evenly between operating expenses and capital expenditures, to be incurred across fiscal 2015 and 2016 to achieve that run rate benefit.
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