Sprint 1Q loss smaller than anticipated; adds new customers
OVERLAND PARK, Kan. (AP) — Sprint reported a smaller-than-anticipated loss in its fiscal first quarter as it added new customers and fewer existing customers left its postpaid business.
Shares gained 6 percent in Tuesday morning trading.
The wireless carrier lost $20 million, or a penny per share, for the period ended June 30. That compares with a profit of $23 million, or a penny per share, a year ago.
Still, the latest results topped Wall Street’s expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for a loss of 8 cents per share.
Sprint Corp.’s stock rose 20 cents to $3.54 in morning trading. Its shares are still down 52 percent over the past year.
Sprint said that churn for its postpaid business — a measure of the amount of customers that left — fell to 1.56 percent from 2.05 percent a year earlier. This was the lowest churn for the postpaid business in the company’s history.
It added 675,000 net customers in the quarter. In the year-ago period it lost 220,000 customers. Sprint’s subscriber base is at 57.7 million people, up from 54.5 million a year earlier.
The Overland Park, Kansas-based company added 310,000 new customers to its postpaid business in the quarter. A year earlier it lost 181,000 customers.
Revenue totaled $8.03 billion. Eight analysts surveyed by Zacks expected higher revenue of $8.32 billion.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on S at http://www.zacks.com/ap/S
Keywords: Sprint, Earnings Report