Top Wireless Stock Posts Q2 Results; Shares Drop 30% Year-to-date

Posted by on Jul 30, 2010 | No comment

Sprint Nextel Corporation (NYSE: S) earlier in the week reported its second-quarter financial results. For the second quarter of 2010, Sprint reported consolidated net operating revenue of $8 billion, down 1% from the same period last year and the first quarter of 2010. The year-over-year decline in net operating revenue can be attributed to lower postpaid wireless service revenues and wireline revenues. These were partially offset by increases from acquisitions made in the fourth quarter of 2009 and total equipment revenue.

Sprint reported adjusted OIBDA of $1.5 billion, for the second quarter of 2010. For the same period last year, the company reported adjusted OIBDA of $1.8 billion, while for the first quarter of 2010; the company had reported adjusted OIBDA of $1.5 billion. The company reported free cash flow of $709 million, for the second quarter of 2010, compared with $676 million reported for the same period last year and $506 million reported for the same period last year.

Sprint reported second-quarter net loss of $760 million and a diluted loss per share of $0.25. For the same period last year, the company had reported net loss of $360 million and diluted loss per share of $0.13.

Dan Hesse, CEO of Sprint, said that the company’s intense focus on improving customer experiences, strengthening its brands, and generating cash are paying off. Hesse said that with strong cash flow, stable OIBDA and widespread third-party recognition for the improvements being made in the customer experience, the company is confident that it can improve its subscriber forecasts for the second half of 2010 and deliver positive total net wireless subscriber additions for the remainder of the year.

Since the announcement of the second-quarter financial results, the Sprint stock fell 5.74%. Year-to-date, the stock has appreciated 30.05%. The stock has a 52-week range of $2.78-$5.31. It is currently trading above its 50-day and 200-day moving averages.

The Sprint stock has seen support at $4.67 and has met with resistance at $5.10. Analysts, currently, have a consensus recommendation of Hold on Sprint Nextel Corporation. The stock has 6 Buy, 7 Outperform, 14 Hold and 4 Underperform ratings, at the moment.

Shares of Sprint slipped 1.05% to $4.71 in today’s pre-market trading.

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BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

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