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  1. #1
    John Navas
    Guest
    As I predicted, with more rough water still ahead:

    <http://www.forbes.com/markets/equities/2006/08/03/sprint-nextel-0803markets09.html>

    Wireless carrier Sprint's marriage with walkie-talkie phone
    specialist Nextel hasn't been as fruitful as boss Gary Forsee may
    have hoped.

    Sprint Nextel's shares fell as much as 15% Thursday morning after the
    fourth-largest U.S. wireless provider announced weak second-quarter
    results. Sprint's $10 billion in revenue fell short of Wall Street's
    $10.4 billion guess, and the company added fewer subscribers and lost
    more existing customers than analysts expected.

    Bear Stearns downgraded Sprint Nextel (nyse: S - news - people ) from
    "peer perform" from "outperform" on the results.

    "Given the extremely competitive environment for wireless services,
    we think it could take Sprint Nextel a while to turn things around,"
    analyst Phil Cusick wrote in a report Thursday.

    Churn, a measurement of the number of subscribers a carrier loses,
    has plagued Sprint. In the second quarter, the company lost 2.1% of
    customers on normal, post-paid calling plans, similar to its first
    quarter.

    But the carrier lost 6% of its pre-paid customers, which includes
    subscribers to its youth-focused service, Boost Mobile, versus 5.4%
    in the prior quarter.

    Sprint added almost 500,000 new pre-paid customers during the
    quarter, beating estimates.

    But high churn suggests "significant erosion in the economics of the
    companyís formerly best-in-class prepaid service," wrote Sanford C.
    Bernstein & Co. analyst Jeffrey Halpern in a recent note entitled
    "While We've Probably Hit Peak Ugliness, Recovery Could Take a
    While."

    Paul Saleh, Sprint's chief financial officer, told Forbes.com
    Thursday that the company would announce its "fourth-generation"
    network technology later this month, which could speed up its Sprint
    and Nextel network integration.

    [MORE]

    --
    Best regards, FAQ FOR CINGULAR WIRELESS:
    John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>



    See More: NEWS: Sprint Nextel Downgraded, Plummets On Results




  2. #2
    John Navas
    Guest

    Re: NEWS: Sprint Nextel Downgraded, Plummets On Results

    <http://www.theregister.com/2006/08/03/sprint_nextel_q2_fy2006_earnings/>

    Razr cuts deep into Sprint Nextel

    Sprint Nextel blames merger and disposal costs for a slump in Q2
    profits. It also acknowledges lower than expected subscriber growth
    for the quarter.

    The US cellco claimed 210,000 new contract customers in the quarter,
    rather worse than analysts had anticipated. It also signed up 498,000
    cheapo pre-paids through its Burst brand during the quarter.

    Q2 net income was $370m, or 12 cents a share, a big fall on Q2 2005's
    net income of $600m, or 40 cents a share. Q2 revenues was $10bn, up
    from $5.6bn last year, thanks to the inclusion of Nextel revenues.

    The company is losing market share because it has a poor handset
    line-up, according to Christopher King, an analyst with Stifel,
    Nicolaus & Co. "They don't have the [Motorola] Razr," he told
    Bloomberg. "It's been an extremely popular product that has changed
    the landscape of the industry."

    Sprint Nextel workers could be in for a bumpy time ahead. The company
    aims to squeeze out even more costs, post-merger, in response to
    slower near-term growth projections. Sales, marketing and
    distribution activities are to be subject to re-organisation, which
    should produce savings equivalent to 7c a share. This comes on top of
    the synergy savings the firm expects from last year's merger between
    Sprint and Nextel.




  3. #3
    stevie
    Guest

    Re: Sprint Nextel Downgraded, Plummets On Results

    there was an article in Wed or Tues Wall Street Journal that stated some
    analysts believe Sprint stock is a very good bargain.

    apparently, cost cutting has had an effect (at Sprint) and some analysts
    believe the stock is due for a good turnaround.
    "John Navas" <[email protected]> wrote in message
    news:[email protected]
    As I predicted, with more rough water still ahead:

    <http://www.forbes.com/markets/equities/2006/08/03/sprint-nextel-0803markets09.html>

    Wireless carrier Sprint's marriage with walkie-talkie phone
    specialist Nextel hasn't been as fruitful as boss Gary Forsee may
    have hoped.

    Sprint Nextel's shares fell as much as 15% Thursday morning after the
    fourth-largest U.S. wireless provider announced weak second-quarter
    results. Sprint's $10 billion in revenue fell short of Wall Street's
    $10.4 billion guess, and the company added fewer subscribers and lost
    more existing customers than analysts expected.

    Bear Stearns downgraded Sprint Nextel (nyse: S - news - people ) from
    "peer perform" from "outperform" on the results.

    "Given the extremely competitive environment for wireless services,
    we think it could take Sprint Nextel a while to turn things around,"
    analyst Phil Cusick wrote in a report Thursday.

    Churn, a measurement of the number of subscribers a carrier loses,
    has plagued Sprint. In the second quarter, the company lost 2.1% of
    customers on normal, post-paid calling plans, similar to its first
    quarter.

    But the carrier lost 6% of its pre-paid customers, which includes
    subscribers to its youth-focused service, Boost Mobile, versus 5.4%
    in the prior quarter.

    Sprint added almost 500,000 new pre-paid customers during the
    quarter, beating estimates.

    But high churn suggests "significant erosion in the economics of the
    company's formerly best-in-class prepaid service," wrote Sanford C.
    Bernstein & Co. analyst Jeffrey Halpern in a recent note entitled
    "While We've Probably Hit Peak Ugliness, Recovery Could Take a
    While."

    Paul Saleh, Sprint's chief financial officer, told Forbes.com
    Thursday that the company would announce its "fourth-generation"
    network technology later this month, which could speed up its Sprint
    and Nextel network integration.

    [MORE]

    --
    Best regards, FAQ FOR CINGULAR WIRELESS:
    John Navas <http://en.wikibooks.org/wiki/Cingular_Wireless_FAQ>





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