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Sprint’s Revenue to Continue Its Fall in Fiscal 2Q15

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Aug. 18 2020, Updated 10:19 a.m. ET

Sprint’s revenue in fiscal 2Q15

In the previous part of this series, we learned that Wall Street analysts expect Sprint’s (S) losses to decrease YoY (year-over-year) in fiscal 2Q15, that is, the September quarter. Sprint has been witnessing adjusted net losses since fiscal 2Q14.

Based on the Wall Street analysts’ consensus estimates, Sprint’s revenue is expected to fall ~4.5% YoY to reach ~$8.1 billion in fiscal 2Q15. Now let’s look at how Sprint has performed in the revenue metric compared to Wall Street’s expectations in recent quarters.

As we can see in the chart above, Sprint’s revenue was less than Wall Street’s expectations in the last two quarters. Sprint’s revenue was ~3.6% and ~2.1% lower than consensus estimates in fiscal 1Q15 and fiscal 4Q14, respectively.

In fiscal 3Q14, Sprint’s revenue surprised Wall Street positively by ~2.2%. However, in fiscal 2Q14, Wall Street analysts’ consensus revenue estimate for Sprint was ~2% higher than what the company reported during the quarter.

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Sprint’s revenue in fiscal 1Q15

The falling trend in Sprint’s revenue continued in fiscal 1Q15. The company’s revenue fell by ~8.7% YoY to ~$8 billion during the quarter. Sprint’s wireless and wireline segments had falling revenues. Sprint’s wireline segment revenue fell by ~15.5% YoY to reach ~$0.63 billion in fiscal 1Q15.

Meanwhile, Sprint’s wireless revenue dropped ~8% YoY to reach ~$7.5 billion in the quarter.

You may consider taking a diversified exposure to Sprint by investing in iShares US Telecommunications ETF (IYZ). The ETF had ~5% of its holdings in the US wireless telecommunication company at the end of August 2015.

Note that the ETF also held a total of ~28.1% in AT&T (T), Verizon (VZ), and T-Mobile (TMUS) on the same date.

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