Jump to content

Sprint's Q1 Earnings Report (May 5th, 2015)


Ascertion

Recommended Posts

Head of Sprint Investor Relations

(800) 259-3755

investor.relations@sprint.com

 

Webcast URL: http://services.choruscall.com/links/sprint150505.html

Event

Fiscal 4Q14 Earnings Call

Date 

5/5/2015 @ 8:30AM ET

Phone

Live Toll-Free (866) 360-1063

Live Toll-Free (866) 360-1063

Live International Toll (706) 634-7849

Replay Toll-Free (800) 585-8367

Contact

Jud Henry

via http://investors.sprint.com/caldesc.aspx?IID=4057219&Key=1073746363&iframe=true&width=40%&height=40%

  • Like 4
Link to comment
Share on other sites

I can't wait for the inevitable irrational market reaction! Weeks of $S gains, erased, because Sprint couldn't hit guidance targets set by the Street.

 

I hate investing sometimes. :lol:

  • Like 3
Link to comment
Share on other sites

This kind of lede bothers me:

 

Sprint (NYSE: S) likely lost postpaid handset customers in the first quarter but could report stronger financial results when it posts its quarterly earnings tomorrow, according to Wall Street analysts at Evercore ISI. In a research note, Evercore analysts Jonathan Schildkraut and Justin Ages also wrote that network quality continues to be a problem for Sprint that will need to be addressed.

 
Sprint's recovery and push for subscriber growth will need more time, the analysts wrote, even as the company's ongoing offer to cut the service bill in half of customers who switch from AT&T Mobility (NYSE:T) and Verizon Wireless (NYSE:VZ) gains traction. "While we believe that the 'cut your bill in half promotion' and various leasing options are playing a positive role in attracting subs (though at the cost of decreasing ARPU), we believe S will be a postpaid phone loser for the quarter," they wrote.

 

This is most likely a case of analysts not doing enough research or letting a bias/narrative shine through. Sure, Sprint has had a lot of network quality issues in the past, but it's undeniable that they've turned a corner and have started to shoot up towards the top of the RootMetrics reports, pulling a lot closer to the other carriers. And honestly, what else could Sprint do differently to address network quality? Is a rip-and-replace of the network not good enough?

 

Maybe I'm just sensitive, being a subscriber and shareholder. Who knows.

 

Once the holes are plugged in subscriber loss, with the continued "best value in wireless" promotions, I don't see how Sprint can't completely flip the script on the Street. But, then again, once they return to profitability, the narrative will be "sure, you may of had a good quarter, but we were thinking you would have an outstanding quarter."

 

Continued:

Another big issue is Sprint's network quality and expansion, which the company is likely going to address, perhaps with a major addition of cell towers. The company has made strides in improving voice and texting quality, according to third-party testing firm RootMetrics, but still lags the other Tier 1 carriers in data speeds and performance.

 
"While S is attracting subs, we believe it will be the network quality that keeps them," the analysts wrote. "Despite S's claims on network improvements, our checks indicate S is not spending (from a tower perspective) to adequately increase network quality. We believe bigger investments are necessary, noting the issuance of an RFP (we call 'Network Vision 2') - not expected to be formalized until summer '15."
 
"Network quality plays a key role," BTIG analyst Walter Piecyk told Bloomberg. "I'm sure they have a network strategy that will get them to the point where they can start taking meaningful market share."

 

I'm glad that Piecyk was able to weigh in. :lol:

  • Like 3
Link to comment
Share on other sites

This kind of lede bothers me:

 

 

This is most likely a case of analysts not doing enough research or letting a bias/narrative shine through. Sure, Sprint has had a lot of network quality issues in the past, but it's undeniable that they've turned a corner and have started to shoot up towards the top of the RootMetrics reports, pulling a lot closer to the other carriers. And honestly, what else could Sprint do differently to address network quality? Is a rip-and-replace of the network not good enough?

 

Maybe I'm just sensitive, being a subscriber and shareholder. Who knows.

 

Once the holes are plugged in subscriber loss, with the continued "best value in wireless" promotions, I don't see how Sprint can't completely flip the script on the Street. But, then again, once they return to profitability, the narrative will be "sure, you may of had a good quarter, but we were thinking you would have an outstanding quarter."

 

Continued:

 

I'm glad that Piecyk was able to weigh in. :lol:

I completely agree - Sprint's history definitely comes to mind to most before Sprint's recent achievements do.  And Sprint's definitely at fault for that.  It's amazing that T-Mobile has done what they've done, but I wouldn't let Analysts get to you.  Most of them do not care for anything but returns.  If Analysts were in charge of running a corporation, it wouldn't last.  They'd nickle and dime everything because making a large profit isn't enough.  

 

Personally, I do not think Sprint's numbers will look good.  

These are the figures from each carrier this quarter.

T-Mobile - +1.1M PostPaid Adds (Phone subscribers)

Verizon - -168K PostPaid Adds (Phone Subscribers)

AT&T - -300K PostPaid Adds (Phone Subscribers)

Sprint - TBA

 

Just by judging these numbers, it doesn't look good for Sprint.  Of course, there are people who are adding completely new lines of service to each carrier, which can offset the predicted losses from Sprint, but I do think Sprint will announce some losses, at least for postpaid subscribers (likely masked by tablet adds.)  But, I predict the stock will go up when Sprint announces their large scale network expansion, too.  I'm pumped for tomorrow and will try to listen in on the call, although I'll be at work during the call.

  • Like 2
Link to comment
Share on other sites

 

 

 

And honestly, what else could Sprint do differently to address network quality? Is a rip-and-replace of the network not good enough?

 

No. They need a rip and replace of their systems and management too... What good is a good network if nobody will come to it because CS stinks? (Which is the other reason besides "the network sucks" for their reputation)

 

I consider myself blessed that I didn't have to contact them too frequently...

  • Like 2
Link to comment
Share on other sites

No. They need a rip and replace of their systems and management too... What good is a good network if nobody will come to it because CS stinks? (Which is the other reason besides "the network sucks" for their reputation)

 

I consider myself blessed that I didn't have to contact them too frequently...

 

You seem to harp on Sprint CS a lot.  Here is a revelation:  all big four domestic wireless operators have less than stellar CS.  It comes with the territory of trying to serve roughly 50-100 million customers.

 

AJ

  • Like 3
Link to comment
Share on other sites

Analysts predict Sprint lost 2,800 monthly subscribers in its fiscal fourth quarter which ended in March, according to a Bloomberg survey of five estimates. That would leave Sprint little changed at 29.9 million postpaid users compared with 28.3 million at T-Mobile.

 

http://www.bloomberg.com/news/articles/2015-05-04/t-mobile-set-to-leapfrog-sprint-as-third-largest-u-s-carrier?cmpid=yhoo

 

 

Sent from my iPhone using Tapatalk

Link to comment
Share on other sites

All I care about is network details tbh. Idc if Sprint is still in 3rd place or last...as long as their network continues to improve then I'm happy!

Don't forget about US Cellular, Sprint or T-Mobile will never be last. I also agree with you, about network details as well.

Link to comment
Share on other sites

Posted: http://newsroom.sprint.com/news-releases/sprint-reports-results-for-fourth-fiscal-quarter-of-2014.htm

 

  • 1.2 million Sprint platform net additions compared to net losses of 383,000 in the prior year quarter
    • Postpaid net additions of 211,000 compared to net losses of 231,000 in the prior year quarter
    • Postpaid phone losses of 201,000 improved sequentially for the fourth consecutive quarter and improved by nearly 500,000 year-over-year
    • Prepaid net additions of 546,000 led the industry for second consecutive quarter and compared to net losses of 364,000 in the prior year quarter
    • Wholesale net additions of 492,000 increased from 212,000 in the prior year quarter
  • Like 8
Link to comment
Share on other sites

Don't forget about US Cellular, Sprint or T-Mobile will never be last. I also agree with you, about network details as well.

 

USCC is not a national operator.  It is a regional operator, hence in a different category.

 

AJ

Link to comment
Share on other sites

Slides are posted...Skimming through them, I don't see anything big about a network announcement....not looking good, will have to wait for the call though.

Link to comment
Share on other sites

Any details?  I'm unable to access the stream at work. 

From what I heard, he said more details to come in the coming time as the project progresses IIRC...

Link to comment
Share on other sites

But he did say that adding macro and pico sites all across to expand and densify the network.

  • Like 1
Link to comment
Share on other sites

Saying that they are in the final stages of the network densification plan called the "Next Generation Plan"

  • Like 3
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • T-Mobile Fires Back At AT&T After Their Statements On T-Priority
    • February is always closer than you think! https://stadiumtechreport.com/news/caesars-superdome-gets-matsing-deployment-ahead-of-super-bowl-lix/ Another Super Bowl, another MatSing cellular antenna deployment. Caesars Superdome, home of the NFL’s New Orleans Saints, has deployed a large number of cellular antennas from MatSing as part of an effort to increase wireless network capacity ahead of the upcoming Super Bowl LIX in February, 2025. It is the third such deployment of MatSing equipment at Super Bowl venues in as many years, following cellular upgrades at Allegiant Stadium for Super Bowl LVIII and at State Farm Stadium for Super Bowl LVII. According to the Saints, the MatSing antennas were part of a large wireless overhaul this offseason, done primarily “to satisfy fans’ desires for wireless consumption and bandwidth,” an important thing with Super Bowl LIX coming to the venue on Feb. 9, 2025. Each year, the NFL’s big game regularly sets records for wireless data consumption, with a steady upward progression ever since wireless networks were first put into stadiums. https://www.neworleanssaints.com/news/caesars-superdome-transformation-2024-new-orleans-saints-nfl-season-part-1-wifi-upgrades-wireless-cellular During the offseason renovation project, the foundation of the facility's new Distributed Antenna System (DAS) was the installation of 16 multi-beam, wideband spherical lense antennas that are seven feet in diameter and weigh nearly 600 pounds apiece, a model called the MatSing MS-48H180. Another 16 large antenna spheres of varying sizes and frequencies have also been installed for a total of 32 new large antennas, in addition to 200 cellular antennas inside and around the building, all of these products specifically made for high-density environments such as stadiums and arenas. The DAS system's performance is expected to enhance further as it becomes fully integrated throughout the season. The MatSing MS-48H180 devices, with a black color that matches the Caesars Superdome's roof, each were individually raised by hoist machines to the top of the facility and bolted into place. Each cellular antenna then transmits 48 different beams and signals to a specific area in the stadium, with each sphere angled differently to specifically target different coverage areas, allowing increased, consistent coverage for high-density seating areas. In addition to creating targets in seating and common areas throughout the stadium, these antennas create dedicated floor zones that result in improved coverage to the field areas for fans in 12 field-level suites and the Mercedes-Benz End Zone Club, teams and on-field media and broadcast elements. The project is also adding 2,500 new wireless access points placed in areas such as concourses, atriums, suites and food and beverage areas for better WiFi coverage.
    • https://www.yahoo.com/news/dallas-county-completes-first-911-194128506.html - First 911 call/text received over Starlink/T-Mobile direct to cell.  This appears to be in Dallas County, MO.
    • FCC: "We remain committed to helping with recovery efforts in states affected by Hurricane Helene. We stand ready to do all that is necessary to return connectivity to hard-hit areas and save lives." SpaceX: "SpaceX and @TMobile have been given emergency special temporary authority by the @FCC to enable @Starlink satellites with direct-to-cell capability to provide coverage for cell phones in the affected areas of Hurricane Helene. The satellites have already been enabled and started broadcasting emergency alerts to cell phones on all networks in North Carolina. In addition, we may test basic texting (SMS) capabilities for most cell phones on the T-Mobile network in North Carolina. SpaceX’s direct-to-cell constellation has not been fully deployed, so all services will be delivered on a best-effort basis." Space posted this at 2pm today on X.
    • https://ibb.co/KrTR877 https://ibb.co/DK3MVgw https://ibb.co/VgWtZwR Should work with these links
  • Recently Browsing

    • No registered users viewing this page.
×
×
  • Create New...