More of a light jog, perhaps?
Sprint’s Q4 loss widened due to increased sales of the highly subsidized iPhone; however, the loss was narrower than what many had expected as the company obtained less subscribers than anticipated. The company posted a loss of $0.35 per share while analysts were looking for $0.37 and the company added 161,000 net subscribers while the market was expecting 272,000. Revenue increased to $8.72 billion from $8.3 billion a year ago while analysts were looking for $8.69 billion.
About 1.8 million iPhones were sold in the quarter, 40% of which went to new subscribers. The impact of iPhone sales on margins was similar to that reported by Verizon (VZ) and AT&T (T) last month. Wireless providers are heavily subsidizing the upfront cost of the iPhone and other smartphones for subscribers as they sign in to pricier contracts. While the goal is to generate more revenue over the long run, some analysts are skeptical that the strategy will pay off.
Sprint Nextel (S : NYSE : US$2.41), Net Change: -0.05, % Change: -1.84%, Volume: 122,593,998
Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.
For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.