Sprint Nextel fails to meet financial expectations
Sprint Nextel has reported their financial results and it hasn’t made analysts and investors very happy. The results were lower than most were hoping, owing to costs associated with last year’s merger between Sprint and Nextel and subscriber growth that was less brisk than expected.
Net income for the quarter was $417 million, down 11% from $470 million last year, when Sprint did not include Nextel. That represents 14 cents per share. Merger related earnings were set at 19 cents per share. Excluding those and other one time charges, the company reported earnings of 35 cents per share, which fell 2 cents below the average of analyst’s expectations.
Sprint added 1.3 million new customers, including 563,000 postpaid customers who pay a monthly bill. Both numbers are well below the analyst’s expectations of 1.4 million and 800,000. The one bright spot for the company was revenue. When adjusted to assume that Sprint and Nextel were combined for both quarters, the $11.55 billion brought in this quarter was up 9% from the same quarter last year.