Why Some Analysts Think Sprint Is Finally Turning the Corner

Telecom & Wireless

Published: January 27, 2016 10:55 am

Last Updated: January 13, 2020 2:31 pm

Is it possible that Sprint Corp. (NYSE: S) actually is turning the corner on a turnaround that seems to be a decade in the making? If you just looked at the earnings report this week, without comparisons and without reference elsewhere, you might think that Sprint is on its way out of existence. A second look would imply something else. It turns out the that earnings report was better than expected, and having Softbank as a majority holder means there might be some sticking power.

While we have already covered earnings in depth, 24/7 Wall St. wanted to see what some outsiders and analysts had to say about Sprint after its earnings. As a reminder, Sprint shares rose over 18% to $2.99 on Tuesday and was trading above $3.00 early Wednesday.

Sprint’s quarterly report beat the consensus loss estimate by $0.10, and it narrowed its loss substantially in the December quarter. Sprint raised its fiscal guidance for adjusted EBITDA of $7.7 billion to $8.0 billion from a prior $6.8 billion to $7.1 billion.

The company is now projecting full-year operating income of $100 million to $300 million, up from an operating loss of $50 million to $250 million. Management also issued preliminary fiscal year 2016 adjusted EBITDA guidance of $9.5 billion to $10.0 billion, helped by operating cost reductions and moving away from the handset subsidy model.

24/7 Wall St. has seen reports from several outside firms: Argus, Oppenheimer, Wells Fargo, Bank of America Merrill Lynch and more.