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Sprint ( S ) is expected to report a wider loss and lower revenue early Tuesday, though its postpaid wireless subscriber additions might increase. Sprint, which is majority owned by Japan-based SoftBank ( SFTBY ), will also likely provide fiscal 2016 guidance, analysts said. Sprint is expected to report a fiscal Q4 loss of 12 cents per share, widening from a 6-cent per-share loss in the year-earlier period. Revenue in the March quarter is expected to have fallen 3% to $8.05 billion, analysts polled by Thomson Reuters estimate. Sprint is the last of the four national wireless carriers to report March-quarter results. T-Mobile US ( TMUS ) added 877,000 postpaid phone lines in Q1, while Verizon Communications ( VZ ) reported a loss of 8,000. AT&T ( T ) last week said that it lost 363,000 postpaid phone customers in Q1. Postpaid refers to customers who are billed monthly, a group that tends to spend more than prepaid customers who buy minutes as needed. AT&T has lost postpaid phone subscribers for six consecutive quarters. “We expect Sprint results will reflect a balanced focus to subscriber growth and profitability,” UBS analyst John Hodulik said in a research report. “We believe churn (customer disconnections) will tick up in Q1, and a lesser focus on volumes will drive slower, albeit positive, postpaid handset growth. This should drive some stability in service revenue declines. “We expect ongoing cost-cutting initiatives and savings from leasing uptake to provide upside to EBITDA (earnings before interest, taxes, depreciation and amortization). We expect management to provide fiscal 2016 guidance, including a path to total revenue stability and positive free-cash flow as the company exits the year.” Scalper1 News
Scalper1 News