Sprint beats by $0.03, reports revs in-line; updates EBITDA guidance (5.43)
- Reports Q1 (Jun) earnings of $0.04 per share, $0.03 better than the Capital IQ Consensus of $0.01; revenues fell 0.4% year/year to $8.13 bln vs the $8.05 bln Capital IQ Consensus. Wireless service revenue grew sequentially for the first time in more than four years, excluding the impact of the new revenue recognition standard Postpaid ARPU grew sequentially for the first time in nearly five years. Retail phone net additions for the sixth consecutive quarter. Postpaid phone net additions of 87,000 were the 12th consecutive quarter of postpaid phone net additions.
- The company is increasing adjusted EBITDA expectations on a reported basis to a range of $12.0 billion to $12.5 billion, as impacts of the new revenue recognition standard were higher than preliminary estimates. The previous expectation was $11.6 billion to $12.1 billion. Excluding the impact of the new revenue recognition standard, the company continues to expect adjusted EBITDA to be $11.3 billion to $11.8 billion. The company continues to expect cash capital expenditures excluding leased devices to be $5 billion to $6 billion.
- Merging with T-Mobile (TMUS)