What Sprint’s Balance Sheet Tells Us about Its Financial Health



Sprint’s liquidity and debt

Over the last few quarters, Sprint (S) has been the only major US mobile operator struggling to deliver profits. The telecom company reported EPS of $0.05 in the second quarter of fiscal 2018 (ended in September), compared with -$0.01 a year prior.

Sprint reported total general-purpose liquidity of $11.2 billion at the end of the quarter, including $8.9 billion in cash, cash equivalents, and short-term investments. The telecom company has $400 million available under vendor financing agreements, which could be used to procure 2.5 GHz (gigahertz) network equipment.

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Sprint’s balance sheet carries ~$40.7 billion in total debt, with ~$3.5 billion in debt maturities over the next four quarters. In the second quarter of fiscal 2018, Sprint had adjusted FCF (free cash flow) of $525 million, compared with $8 million in the previous quarter and $420 million in the second quarter of fiscal 2017. The company expects adjusted FCF between -$1 billion and -$500 million in fiscal 2018.

Peer comparison

Verizon’s (VZ) adjusted EPS grew ~24.5% YoY (year-over-year) to $1.22 in the quarter ended September 30, while AT&T’s (T) adjusted EPS rose ~21.6% YoY to $0.90. T-Mobile’s (TMUS) EPS rose ~47.6% YoY to $0.93.


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