Sprint’s fiscal 2018 outlook
Last month, Sprint (S) reported strong second-quarter fiscal 2018 (ended in September) financial results, beating its earnings and sales expectations. Sprint’s net sales grew ~6.4% YoY (year-over-year) to $8.4 billion, beating analysts’ expectation of $8.0 billion, and it reported EPS of $0.05, exceeding analysts’ estimate of -$0.01.
Following the strong results, Sprint raised its fiscal 2018 (ending March 2019) adjusted EBITDA guidance to $12.4 billion–$12.7 billion from $12.0 billion–$12.5 billion. Excluding the effects of its new revenue recognition accounting standards, Sprint expects adjusted EBITDA of $11.7 billion–$12.0 billion.
In fiscal 2018, Sprint expects cash capital expenditure (excluding leased devices) of $5.0 billion–$5.5 billion as it ramps up its densification plan. The company expects adjusted free cash flow between -$1 billion and -$500 million.