Subscriber and profit losses continued in Sprint Nextel's first quarter as the firm prepared to launch an innovative handset and a nationwide 4G network that it hopes will return it to its former glory and profits.
The company said it lost $865 million on revenue of $8.1 billion.
The Nextel operation continued to be an albatross around Sprint's neck. After failing to sell the iDEN network, Sprint hunkered down and repositioned it as a prepaid network.
Sprint may be betting the store on the success of its 4G network and its majority ownership of Clearwire, which is rolling out a nationwide WiMax high-speed network. The deployment of the network appears to be accelerating, as Sprint said its 4G service currently serves nearly 40 million people and coverage is expected to reach as many as 120 million people by the end of the year. The U.S. solar bellwether is releasing its first quarter earnings after the market close on Wednesday, and more and more focus from the Street has been on how First Solar is transitioning to the largest-scale, utility project-oriented solar space. The decline in cancellations during the first three months of 2010 indicates the company's turnaround effort is showing progress, but a key part of its business experienced further weakness. Sprint lost 578,000 postpaid subscribers, mostly in its Nextel division. executives endured more than 10 hours of congressional grilling in one of the most public, and most hostile, political lashings in the firm’s 141-year history. They probably succeeded in that.”
At 08:30 am ET, the S&P 500 futures rose 4.90 points to 1,185.90. The Dow Jones Industrial average futures climbed 28 points to 10,983. The Nasdaq Composite futures gained 10.75 points to 2,019.50.
Sprint Nextel (NYSE: S) said Wednesday that its first quarter net loss widened to $865 million or 29 cents per share, compared to net loss of $594 million, or 21 cents per share, in the comparable quarter last year. (NYSE: WLP) reported that its first-quarter net income rose to $876.8 million or $1.96 per share, compared to $580.4 million, or $1.16 per share, in the year-ago quarter. Adjusted earnings climbed 7.8% to $871.9 million, or $1.95 a share, from $808.8 million, or $1.62 per share in the prior-year quarter. Total revenue dropped to $15.1 billion from $15.14 billion in the prior year quarter. At 13:24 pm London time, the UK FTSE rose 1.10 points or 0.02% to 5,604.62. The German DAX and French CAC increased 0.80% and 0.81% respectively.
The Nikkei 225 fell 287.87 points or 2.57% to 10,924.79. The Hang Seng index of Hong Kong slumped 312.39 points or 1.47% to 20,949.40.
NYMEX Crude oil for May delivery declined 7 cents to $82.37 a barrel in electronic trading.
Sprint Nextel Corp. Contract customers are considered the most lucrative.
The rating is based on predictions that Sprint can stabilize its contract customer base through the second quarter and find new areas to manage or cut costs, as well as on its current share price being on the low end of the sector’s historical range, the note said.
The second quarter, which started at the beginning of the month, is the “most likely quarter ... for Sprint to meaningfully best expectations,” the note said.
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