Skip to Content
Market Update

Earnings on Tap: Sprint Nextel

The company's investments should help boost its competitive advantages and create value for shareholders over the long run.

Mentioned: , ,

 Sprint Nextel (S) is set to report fourth-quarter earnings Thursday before the opening bell. Wall Street analysts estimate the company to report a wider loss of $0.46 per share compared with the year-ago period, when it posted a loss of $0.43 per share.

Last quarter, Sprint reported its first quarterly decline in customer subscriptions since early 2010. The company's net loss widened to $767 million, or $0.26 per share, in the third quarter but was narrower than expected.

This time around, too, investors will keep a close watch on the company's net subscriber additions as well as  Apple (AAPL) iPhone sales, though Morningstar analyst Michael Hodel thinks Sprint will see more customer growth once Network Vision and the Nextel transition are in place. "These improvements should force a reassessment of Sprint's value," opines Hodel. 

Sprint's deal with Softbank (SFTBF) should help enhance its competitive position and create value for shareholders over time.

The stock, which is presently trading slightly below Hodel's fair value estimate, has held relatively steady during the last three months. 

Gazala Parveen does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.