Sprint’s Revenue Remains below Wall Street’s Expectations in Fiscal 2Q15



Sprint’s revenue in fiscal 2Q15

In the previous part of this series, we learned that on an adjusted basis, Sprint’s (S) losses fell year-over-year (or YoY) during its fiscal 2Q15. However, the telecom (telecommunication) company’s losses were higher than anticipated by Wall Street’s analysts.

Now we’ll look at Sprint’s consolidated revenue. The carrier’s revenue came in below Wall Street’s expectations again this quarter. Its consolidated revenue fell ~6% YoY to reach ~$8 billion during fiscal 2Q15. The revenue figure was ~1.5% below Wall Street analysts’ consensus estimates.

As you can see in the chart above, Sprint’s revenue has been less than Wall Street analysts’ expectations for three quarters in a row. In fiscal 1Q15 and fiscal 4Q14, Sprint’s revenues were ~3.6% and ~2.1% below consensus estimates, respectively.

During fiscal 3Q14, Sprint’s revenue surprised analysts positively by ~2.2%. Nevertheless, during fiscal 2Q14, the telecom company’s revenue was lower than Wall Street’s consensus revenue estimates by ~2%.

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Sprint’s revenue fell at a slower pace in fiscal 2Q15

Earlier, Sprint’s consolidated revenue dropped ~8.7% YoY in fiscal 1Q15.  During that quarter, Sprint’s wireline segment revenue fell by ~15.5% YoY. In addition, its wireless revenue fell ~8% YoY during fiscal 1Q15.

In fiscal 2Q15, the same trend continued. During the quarter, Sprint’s wireline revenue fell by ~14% YoY to reach ~$0.61 billion. Meanwhile, the company’s wireless revenue fell by ~5.2% YoY to ~$7.5 billion.

For a diversified exposure to Sprint, you may consider the iShares US Telecommunications ETF (IYZ). The ETF had ~3.5% of its holdings in the US wireless telecom player at the end of September 2015. It also held a total of ~28.1% in the top three US wireless players AT&T (T), Verizon (VZ), and T-Mobile (TMUS).


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