Hot Stock in Focus: Sprint Corporation (NYSE: S)

On 25 Nov 2019, Sprint Corporation (NYSE: S) changed 3.48% to recent value of $5.94. The stock transacted 29826028 shares during most recent day however it has an average volume of 13449.02K shares. It spotted trading -26.30% off 52-week high price. On the other end, the stock has been noted 9.19% away from the low price over the last 52-weeks.

Sprint Corporation (NYSE:S) recently stated results for the fiscal year 2019 second quarter, including stability in postpaid wireless service revenue and continued growth in postpaid net additions. The company also stated a net loss of $274M, operating income of $237M, and adjusted EBITDA* of $2.6B.

Stable Postpaid Wireless Service Revenue and Continued Focus on Costs
Sprint has focused on growing its relationship with consumers by promoting its feature-rich Unlimited Plus and Unlimited Premium rate plans and selling additional devices and value-added services. This strategy delivered postpaid net additions of 273,000 driven by growth in data devices and partially offset by postpaid phone consumer losses. Postpaid wireless service revenue of $4.2B was relatively flat sequentially and year-over-year, as the company works to stabilize postpaid ARPA and average postpaid accounts.

Total wireless service revenue of $5.0B was negatively influenced by lower Lifeline revenue as a result of estimated reimbursements to federal and state governments for subsidies claimed contrary to Sprint’s usage policy and the continued amortization of prepaid contract balances as a result of adopting the new revenue standard last year. Not Including these impacts, total wireless service revenue was relatively stable sequentially and year-over-year.

Net loss of $274M, operating income of $237M, and adjusted EBITDA* of $2.6B were also negatively influenced by the aforementioned estimated reimbursements to federal and state governments.

The company continued its focus on cost optimization during the quarter by driving year-over-year gross reductions in cost of services and selling, general and administrative expenses, with most of the reductions coming from network optimization and more efficient sales and marketing spend. These reductions have been offset by incremental costs associated with network coverage and capacity improvements, together with other consumer experience initiatives.

S has a gross margin of 58.70% and an operating margin of -1.50% while its profit margin remained -8.20% for the last 12 months. Its earnings per share (EPS) expected to touch remained -748.90% for this year.  The company has 4106.86M of outstanding shares and 649.6M shares were floated in the market. According to the most recent quarter its current ratio was 0.8 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.13% from the mean of 20 days, -4.42% from mean of 50 days SMA and performed -7.96% from mean of 200 days price. Company’s performance for the week was 1.37%, -6.90% for month and YTD performance remained 2.06%.


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