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Sprint Focuses on Attracting Customers, But Still Loses 545,000 Subscribers
Excerpt from the InvestorGuide.com Stock of the Day on 10/29/2009

Sprint Nextel has been having a rough time trying to keep up with its competitors. AT&T (T: Charts, News, Offers) and Verizon (VZ: Charts, News, Offers) seem to be soaring ahead, while Sprint is struggling just to stay in the game. Sprint has been posting loss after loss, loss in profit, loss in number of subscribers, and so on, and today's third quarter earnings report was no exception. But despite how things appear on the surface, Sprint CEO Dan Hesse said these were Sprint's best results in two years. What is it that gives Hesse hope for the future, and how long will it be before we see gains on the company's reports once again?

This morning, Sprint Nextel reported a third quarter net loss of $478 million, a significant drop from last year's $326 million loss, and revenue fell from $8.8 billion to $8.04 billion. And yet as frustrating as those numbers seem, the area where Sprint is really struggling is in its subscriber numbers. AT&T added approximately 2 million subscribers in the third quarter, and Verizon added over a million. Sprint, on the other hand, posted a net loss of 545,000 subscribers. The net loss was comprised of a gain in prepaid customers, but a loss of over 800,000 postpaid contract subscribers (unfortunately for Sprint, this is the subset of wireless subscribers who tend to spend the most on their plans). What's even more frustrating is that a good portion of Sprint's profit loss is attributed to the company's increased spending on subsidizing phones, which they have done in an effort to attract more customers to their cheaper phones; without this, their subscriber loss would likely have been even higher. More >


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Sprint Sees Promise in Prepaid Market
Excerpt from the InvestorGuide.com Stock of the Day on 7/29/2009

The Sprint Nextel Corporation (S: Charts, News, Offers) announced that it posted a net loss of $384 million for the quarter. Sprint's quarterly performance is worse than last year's $344 million net loss. The telecommunications tycoon also saw its revenue fall 10 percent to $8.14 billion from $9.06 billion a year ago. Although, CEO Dan Hesse is confident that Sprint is on the right track despite the recent losses. What is the cause of Sprint's recent slip in performance? How does Dan Hesse and Sprint intend to turn things around? More >

One More Strike for Sprint
Excerpt from the InvestorGuide.com Stock of the Day on 2/20/2009

Wrapping up their fiscal year ended 2008, the telecommunications giant ended Q4 with a loss of $1.62 billion. Losses from the previous four quarters totaled $2.79 billion. In comparison to financial stocks like Citigroup (C: Charts, News, Offers), losing $2.79 billion that is really not that bad. However, that is like comparing apples to broccolis; they are in different worlds. Sprint's subscriber base declined by 1.3 million, reducing the company's overall revenue by 14 percent. Still, it continues to provide service to 49.3 million subscribers. CEO Dan Hesse stated that the company was in a better operating position entering 2009. However, the company has been generating consistent losses for over a year, so the question is will they really be able to end their losses and be back in the black? More >

Will Sprint Make the Same Mistake Twice?
Excerpt from the InvestorGuide.com Stock of the Day on 5/6/2008

Blockbuster mergers just don't work, especially in the tech sector. Why? The reasons are well-documented. More often than not, you have two large companies with a proud lineages that are not especially pre-disposed to co-operating with each other (especially if they have spent the last few decades trying to grab the other's lunch), the work cultures are different, the philosophies in regards to matters such as management structure, operational efficiencies, innovation vary and more pragmatically speaking, the tech infrastructure that they operate on is different too. Plus the much touted 'synergies' never really pan out because the estimates for those are made by bankers (who typically only get paid if and when a deal closes). So in these cases, one plus one never equals three. In fact, you are lucky if it still equals two after a few years. Moral of the story, Microsoft (MSFT: Charts, News, Offers) shareholders should be glad Jerry is playing hard to get. In some rare cases, companies can still recover after a huge, value-destroying merger (e.g. HP (HPQ: Charts, News, Offers) and Compaq) but it doesn't look like Sprint is going to be half as lucky with the whole Nextel dalliance. If reports published over the last couple of days are any indication, the final chapters are about to be written in the Sprint-Nextel saga, how does this story end? More >

Sprint Nextel Posts Losses in Earnings and Customers   2/28/2008

Will Sprint Slow to a Crawl?   10/5/2007

Sprint Tumbles on Weak 2007 Outlook, Plans 5,000 Job Cuts   1/9/2007

Sprint Looks to Be in Troubled Waters   10/11/2006

Sprint Nextel Reports Lower Q-4 Net Income   2/22/2006

Sprint Nextel (S) Upgrades

Date
Analyst
Old Rating
New Rating
09/14/2009
Hudson Square Research
Hold
Buy
05/05/2009
Oppenheimer
Underperform
Perform
08/07/2008
Pail Research
Neutral
Buy
05/06/2008
Cowen
Neutral
Outperform
03/13/2008
Soleil Securities
Hold
Buy
01/18/2008
Pali Research
Sell
Neutral

Sprint Nextel (S) Downgrades

Date
Analyst
Old Rating
New Rating
08/11/2009
Piper Jaffray
Neutral
Underweight
05/05/2009
Raymond James
Outperform
Market Perform
03/16/2009
Wachovia
Outperform
Market Perform
09/29/2008
Oppenheimer
Perform
Underperform
05/08/2008
Soleil Securities Group
Buy
Hold
10/09/2007
Stiffel, Nicolaus & Co.
Hold
Sell

Sprint Nextel (S) New Coverage

Date
Analyst
Rating
10/02/2009
National Bank
Underperform
04/24/2009
AURIGA
Hold Rating
10/18/2007
Bernstein
Market Perform
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