Research Desk Line-up: TELUS Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 15, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Sprint Corp. (NYSE: S), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=S, following the Company's posting of its operating results on July 31, 2017, for the first quarter of the fiscal year 2017. The wireless carrier recorded a fourth consecutive growth and an eighth consecutive quarter of postpaid net additions, and also raised the low-end of its adjusted EBITDA and operating income for the fiscal year 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Wireless Communications industry. Pro-TD has currently selected TELUS Corporation (NYSE: TU) for due-diligence and potential coverage as the Company reported on August 11, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on TELUS when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on S; also brushing on TU. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
Sprint reported net operating revenues of $8.16 billion in Q1 FY17 compared to operating revenue of $8.01 billion in Q1 FY16; representing its fourth consecutive quarter of y-o-y growth. The Company's revenue number was in-line with analysts' estimates of $8.16 billion.
Sprint recorded operating income of $1.16 billion compared to $361 million in Q1 FY16. In the reported quarter, the Company posted adjusted EBITDA of $2.85 billion compared to $1.46 billion in the prior year's same quarter; its highest quarterly adjusted EBITDA in approximately 10 years.
During Q1 FY17, Sprint recorded a net income for the first time in three years at $206 million, or $0.05 per share, compared to a net loss of $302 million, or $0.08 per share, in Q1 FY16. The Company's earnings exceeded Wall Street's forecasts for a loss of $0.01 per share. Excluding the after-tax benefit of non-recurring items in the reported quarter, Sprint would have reported net income of more than $150 million, demonstrating the improved underlying trends of the business.
The Chief Operating Officer (CEO) of Sprint, Marcelo Claure, said:
"Sprint reached an important milestone this quarter by returning to profitability for the first time in three years. This represents the progress of a turnaround journey that has delivered improvements in postpaid phone and prepaid customer growth, a return to top-line growth, and a significantly transformed cost structure."
Cost Reduction Program
Sprint noted that it continued to make progress on its multiyear plan to transform the way it does business and improve its cost structure. The Company delivered approximately $370 million of combined y-o-y reductions in cost of services and selling, general, and administrative expenses (SG&A) in Q1 FY17, bringing the total reduction during the past nine quarters to approximately $4 billion.
Sprint expects an additional $1.3 billion to $1.5 billion of y-o-y net reductions in cost of services and SG&A in FY17. Although the gross reductions are expected to be higher, the Company plans to reinvest some of the savings into future growth initiatives.
Postpaid Phone Customer Growth
During Q1 FY17, Sprint recorded 88,000 postpaid phone net additions; its eighth consecutive quarter of net additions. Postpaid phone gross additions also grew on a y-o-y basis for the sixth consecutive quarter and were the highest first-quarter result in five years.
The Company stated that recent turnaround of Sprint's prepaid business has been driven by its higher revenue-generating brands. The Company's Q1 FY17 prepaid net additions of 35,000 were positive for the second consecutive quarter and contributed to sequential growth in prepaid service revenue for the first time in six quarters.
Sprint's total net additions were 61,000 in the reported quarter, including postpaid net losses of 39,000; prepaid net additions of 35,000; and wholesale and affiliate net additions of 65,000. The Company's postpaid phone churn was 1.50% and total postpaid churn was 1.65%.
Outlook
For FY17, Sprint raised the low-end of its previous adjusted EBITDA expectations' range and now expects $10.8 billion to $11.2 billion compared to the previous expectations in the range of $10.7 billion to $11.2 billion. The Company also raised the low-end of its previous operating income expectations and now expects operating income in the band of $2.1 billion to $2.5 billion compared to the previous forecasts which were between $2 billion to $2.5 billion. Sprint is estimating cash capital expenditures, excluding devices leased through indirect channels, of $3.5 billion to $4 billion for FY17.
Stock Performance
On Monday, August 14, 2017, the stock closed the trading session at $8.41, climbing 1.20% from its previous closing price of $8.31. A total volume of 8.01 million shares have exchanged hands. Sprint's stock price soared 6.73% in the past three months and 38.10% in the previous twelve months. The stock currently has a market cap of $32.48 billion.
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