Sprint Nextel Beats Up on Analysts Yet Again

Sprint Nextel (NYSE: S  ) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Sprint Nextel met expectations on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP loss per share grew.

Gross margins dropped, operating margins dropped, net margins grew.

Revenue details
Sprint Nextel reported revenue of $9.01 billion. The 25 analysts polled by S&P Capital IQ hoped for revenue of $8.92 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.42. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.44 per share. GAAP EPS were -$0.44 for Q4 compared to -$0.43 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 37.2%, 70 basis points worse than the prior-year quarter. Operating margin was -7.8%, 400 basis points worse than the prior-year quarter. Net margin was -14.7%, 20 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $8.73 billion. On the bottom line, the average EPS estimate is -$0.28.

Next year's average estimate for revenue is $35.41 billion. The average EPS estimate is -$0.71.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,031 members out of 2,501 rating the stock outperform, and 470 members rating it underperform. Among 452 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 348 give Sprint Nextel a green thumbs-up, and 104 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sprint Nextel is outperform, with an average price target of $6.66.

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