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Sprint’s Q3 Revenue Beats Estimates, Earnings Miss

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Sprint’s third-quarter results

Sprint (S) reported its fiscal 2018 third-quarter earnings results before the market opened on January 31. The telecommunications company reported revenue of $8.6 billion, beating analysts’ estimate of $8.4 billion. Its revenue rose YoY (year-over-year) and sequentially. In the third quarter of fiscal 2017, Sprint reported revenue of $8.2 billion. In the second quarter of fiscal 2018, Sprint reported revenue of $8.4 billion.

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Sprint reported adjusted EPS of -$0.03 in the third quarter of fiscal 2018, missing analysts’ consensus estimate of -$0.02. In the third quarter of fiscal 2017, Sprint reported adjusted EPS of $0.03. In the second quarter of fiscal 2018, the company’s adjusted EPS reached $0.05. Analysts expect Sprint’s sales and adjusted EPS to be $33.3 billion and $0.06, respectively, in fiscal 2018 (which ends in March 2019).

Sprint’s adjusted EBITDA rose ~14.0% YoY to $3.1 billion in the third quarter of fiscal 2018. Its adjusted EBITDA margin expanded to 54.4% in the third quarter of fiscal 2018 compared to 45.9% in the previous year’s quarter.

In the third quarter of fiscal 2018, Sprint added 309,000 postpaid customers. This number included 26,000 postpaid phone customer net losses. The company also lost 173,000 prepaid customers in the same quarter.

Stock price

Sprint stock has risen 3.8% year-to-date and 14.2% in the trailing-12-month period. AT&T’s share price has fallen 2.1% in the last five trading days. In comparison, peer telecommunications stocks Verizon (VZ), AT&T (T), and T-Mobile (TMUS) have generated returns of -6.5%, -4.9%, and 0.8%, respectively, in the last five trading days.

Soon, we’ll release a detailed series with more insights into Sprint’s earnings. Stay tuned!

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