In its latest quarter, cash flow was slightly up from $7.8 billion to $8.2 billion. Its EPS growth from $0.60 to $0.67 was largely attributed to share buybacks.
For some time now, Sprint Nextel Corporation (NYSE:S) has been a ship in need of righting. It has made a deal with Clearwire Corporation (NASDAQ:CLWR) to increase the quality of its network. Sprint is also caught in a bidding war as DISH Network Corp (NASDAQ:DISH) and Softbank have both would like to acquire Sprint.
Sprint’s latest quarter shows a more grim picture than that of Verizon and AT&T. When it comes to earnings, Sprint is actually losing money. Its net operating revenue has essentially remained flat from the same quarter a year ago. Its cash flow has declined as well, which means more changes need to be made.
Based on all the criteria, the best in class appears to be Verizon Communications Inc. (NYSE:VZ). This is due to its leading share in the wireless market, its room to increase future dividends, and infrastructure. With the U.S. telecom market becoming more and more saturated, it doesn’t look good for lesser players such as Sprint. While AT&T Inc. (NYSE:T) appears to be a close second, Verizon seems to be the best operator.
Justin Pope has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Justin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Which of These 3 Telecoms Should You Dial Up? originally appeared on Fool.com and is written by Justin Pope.
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