Sprint’s Stock Hit A New 52-Week But Gave Up All Of The Gains
Sprint (NYSE: S) has been a top performing stock over the past year. Shares of the telecommunication company is higher by nearly 90 percent since the start of 2016 and nearly 60 percent over the past year – a performance which its peers can’t match.
Shares of T-Mobile US (NASDAQ: TMUS) are higher by 21 percent since the start of 2016 and just 16 percent over the past year. Shares of AT&T (NYSE: T) are higher by 14 percent since the start of the year and 16 percent over the past year while shares of Verizon Communications (NYSE: VZ) are higher by just 8 percent since January 1 and 12 percent over the past year.
Sprint’s stock hit a new 52-week high on Tuesday of $7.16 but quickly reversed course and traded as low as $6.64 before closing the day at $6.86, down nearly one percent.
Sprint offered a preliminary outlook for its third quarter and expects its total net operating revenue to show a three percent year-over-year growth to $8.25 billion. The company also guided its wireless net operating revenue to grow by five percent from a year ago to $7.85 billion.
Sprint’s guidance also calls for continued losses, although it does expect a drastic improvement. Specifically, the company expects to report a net loss of $142 million in the quarter compared to a net loss of $585 million in the same quarter a year ago. However, the current quarter’s results include a non-cash after-tax gain of $218 million related to spectrum swaps it conducted with other wireless carriers.
Moving on, Sprint expects its operating income to return to positive territory and total $622 million in the quarter, marking an improvement of $624 million from a year ago. Similarly, the figure includes a pre-tax non-cash gain of $354 million related to spectrum swaps with its peers.
In terms of subscriber growth, Sprint expects to report that it added 740,000 clients to its network during the quarter, 344,000 of which are postpaid subscribers. The company also expects to add 823,000 wholesale and affiliate customers and say that it lost 427,000 prepaid clients.
Finally, total postpaid churn is expected to come in at 1.52 percent which marks an improvement of two basis points year-over-year and postpaid churn of 1.37 percent would mark the lowest levels ever seen and an improvement of 12 basis points from a year ago.
Sprint is scheduled to report its third quarter results on October 25 before the market open.