Sprint: More Losses, But It Could Have Been Worse
Sprint Nextel suffered another ugly loss in its latest quarter, but it wasn’t nearly as bad as Wall Street had expected and the company’s shares are on the rise as a result.
Reporting first quarter earnings this morning, the nation’s third largest wireless carrier posted a loss of $863 million, or 29 cents a share on revenue of $8.73 billion. That’s quite a bit larger than the loss of $439 million, or 15 cents, it suffered a year earlier. Still, it was better than the loss of 41 cents a share on revenue of $8.71 billion that analysts had been expecting.
But the good news ended there.
Sprint lost 192,000 contract subscribers during the quarter, a real disappointment after the rare gain in valuable wireless phone customers it managed last year. And it saw a decline in iPhone sales as well.
Sprint said it sold only 1.5 million iPhones in the quarter, a 17 percent drop from the quarter prior.
So, overall, not the best performance from a carrier that’s struggling amid intense competition from AT&T and Verizon Wireless. But it could have been worse.