Sprint’s Forward Valuations: How’s It Running Next to Peers?
On January 16, 2017, Sprint was trading at a forward PE multiple of ~185.1x, which a lot higher than that of Verizon, AT&T, and T-Mobile.
On January 16, Sprint was trading 23.0% above its 100-day moving average, as compared to Verizon, which was trading 3.0% above its 100-day moving average.
Sprint’s (S) network continues to improve and has actually been performing at best-ever levels, despite reductions in its capex.
Wall Street expects to see ARPU trends improve as 50% off promotions roll off and Sprint migrates subscribers onto its accretive Unlimited Freedom plan.
Sprint (S) expects its postpaid phone churn to rise mainly due to the release of Apple’s (AAPL) iPhone 7 in September 2016.
Sprint’s expected capex spending is estimated to be ~$3 billion in fiscal 2016, excluding the impact from leased devices sold through indirect channels.
As of January 16, 2017, the majority of analysts have recommended “hold” on Sprint stock.
Sprint’s forward EV-to-EBITDA metric was ~6.1x—lower than T-Mobile’s ~6.6x.
In fiscal 2Q16, Sprint’s strong momentum showed no signs of slowing down.
Sprint (S) expects to have had ~2 million fewer prepaid customers at the end of fiscal 3Q16.
Wall Street expects Sprint’s wireless segment’s service revenue to fall ~5.5% YoY (year-over-year) to reach ~$5.9 billion in fiscal 3Q16.
Sprint anticipates its adjusted EBITDA to be in the range of $9.5 billion–$10 billion for fiscal 2016.
Wall Street expects Sprint’s (S) total revenue to rise ~4.8% YoY (year-over-year) to reach ~$8.5 billion in fiscal 3Q16.
Wall Street expects Sprint’s 3Q16 earnings to have risen, with analysts projecting adjusted EPS of -$0.08, as compared to EPS -$0.21 in fiscal 3Q15.
Fitbit appears to be betting that creating a social environment for its customers will encourage users to interact with its devices more frequently.
AT&T’s (T) dividend yield was ~4.8% on January 10, 2017, higher than Verizon’s (VZ) dividend yield of ~4.3%.
In this part of the series, we’ll look at AT&T’s (T) technical indicators and compare them with those of other telecommunications companies.
AT&T’s (T) DIRECTV Now over-the-top (or OTT) service is a new video streaming service that was launched on November 28, 2016.
AT&T’s (T) focus on growing its newly acquired Mexican operations appears to have been successful, helping to offset ongoing US weakness.
Network performance is the key factor that affects customer retention. AT&T (T) continues to invest in the improvement of its network.