Sprint’s capital expenditure
Now let’s look at Sprint’s (S) spending on capital expenditures (or capex). The telecom company continues to invest in capital expenditures in order to improve its network. Wall Street analysts expect Sprint’s spending on cash capex to reach ~$1.5 billion in the third quarter of fiscal 2018 (quarter ended December) excluding leased devices.
Sprint spent $1.3 billion on cash capex excluding leased devices, up from $1.1 billion in the first quarter, and up from $0.7 billion in the second quarter of fiscal 2017. The YoY increase was mostly due to higher network spending as the mobile operator looks to ramp up spending on Next-Gen network initiatives.
Expected capex investments in 2018
For the full-year fiscal 2018 (year ending March 2019), Sprint is expecting its cash capex to be between $5.0 billion and $5.5 billion, which is excluding leased devices. In fiscal 2017, the telecom company had spent $3.3 billion on cash capex excluding leased devices.
In comparison, competitor Verizon (VZ) is forecasting its capex to be between $16.6 billion to $17.0 billion in the full-year 2018, while T-Mobile (TMUS) is expecting its cash capex excluding capitalized interest to be in the range of $4.9 billion to $5.3 billion. AT&T (T) expects net capex of $22.0 billion in 2018.