The 10-second takeaway
For the quarter ended March 31 (Q1), Sprint Nextel Corporation (NYSE:S) met expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP loss per share dropped.
Gross margins expanded, operating margins shrank, net margins grew.
Revenue details
Sprint Nextel Corporation (NYSE:S) booked revenue of $8.79 billion. The 18 analysts polled by S&P Capital IQ expected a top line of $8.73 billion on the same basis. GAAP reported sales were the same as the prior-year quarter’s.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at -$0.21. The 13 earnings estimates compiled by S&P Capital IQ anticipated -$0.30 per share. GAAP EPS were -$0.21 for Q1 against -$0.29 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 43.9%, 210 basis points better than the prior-year quarter. Operating margin was 0.3%, 70 basis points worse than the prior-year quarter. Net margin was -7.3%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter’s average estimate for revenue is $8.67 billion. On the bottom line, the average EPS estimate is -$0.22.
Next year’s average estimate for revenue is $35.09 billion. The average EPS estimate is -$0.76.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,025 members out of 2,493 rating the stock outperform, and 468 members rating it underperform. Among 444 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 346 give Sprint Nextel Corporation (NYSE:S) a green thumbs-up, and 98 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sprint Nextel Corporation (NYSE:S) is outperform, with an average price target of $6.86.
The article Sprint Nextel Beats Up on Analysts Yet Again originally appeared on Fool.com and is written by Seth Jayson.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.
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