They have something to celebrate out in Overland Park, Kansas after a long drought. Sprint’s first quarter earnings came in stronger than expected, and the company’s stock price has surged 20% in response.
Revenue of $8.11B actually came in lighter than expected, but Sprint only lost $0.21 per share during the quarter, six cents better than expected. That wouldn’t be enough to make the stock jump so much, but they also upgraded fiscal 2015 EBITDA projections from $6.8-7.1B all the way up to $7.7-8.0B. That’s a big jump given there’s just one more quarter left. They see fiscal 2016 EBITDA as being up 24% from there to $9.5-10B.
Sprint added almost 500K net customers during the quarter, powered by the aggressive pricing it had put into place. They have reduced headcount by 2,500 people since the fall as part of a major cost cutting program, news of which had spooked the market a bit earlier in the week.
In the wireline business, which few bother to look at anymore, the situation didn’t change much. Revenues were $581M, dropping another $18M sequentialy, while adjusted EBITDA ticked upward slightly from $29M to $33M with margins rising above the 5% mark again.
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