Sprint reports lower than expected fiscal Q2 earnings, slashes 2000 jobs

Sprint reports lower than expected fiscal Q2 earnings, slashes 2000 jobs
After Wall Street closed on Monday, Sprint reported lower earnings than expected for the fiscal second quarter (third calendar quarter). The company had a loss of 19 cents a share, much wider than the 6 cents a share of red ink that Wall Street analysts were expecting. Revenue also fell under expectations as Sprint reported top-line sales of $8.49 billion. That was lower than the $8.59 billion that the Street was looking for, but did top last year's revenue of $7.75 billion.

In a period where AT&T, T-Mobile and Verizon are constantly adding new post-paid customers, Sprint lost 272,000 of those coveted accounts in the three month period. While Sprint is at the moment the third largest carrier in the U.S., T-Mobile CEO John Legere has already predicted that his company will leap frog over Sprint by the Thanksgiving Day holiday later this month.

Sprint also announced that it is cutting 2000 employees from its work force. That amounts to 5% of the carrier's head count. Sprint is hoping to save $1.5 billion by going ahead with the layoffs.

It has been a tough year for Sprint. The mobile operator doesn't seem to be able to find an identity in the markeplace. If T-Mobile is the innovative carrier that puts customers first, Verizon is the Cadillac of wireless operators, and AT&T is the old name that has been around, Sprint doesn't seem to resonate well with the public. Under new CEO Marcelo Claure, who replaced long time chief Dan Hesse, Sprint has been trying to undercut the competition with low-priced data plans.

In after-hours trading on the NYSE Monday night, Sprint's shares have fallen 7.6% to $5.73.

source: CNBC, BusinessInsider

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15 Comments

1. TheRequiem

Posts: 245; Member since: Mar 23, 2012

I think Marcelo's number one objective right now is to re-invent the brand and get it's Network to a very competitive stand point. He just hired the lead chief network operator from Softbank of Japan, who has major experience with the 2.5ghz frequency. It sounds to me like the guy will be making serious changes and wants to invent a new Sprint. Hope the best for them, more competition is better.

8. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Part of the problem with 2.5ghz is that it is a poor coverage spectrum. Softbank needs to lay down some big ones at the 600mhz auction to get Sprint on the right track, they have the least low end spectrum of the carriers, and that low end spectrum is needed for reliable building penetration.

12. Doakie

Posts: 2478; Member since: May 06, 2009

They have nation wide coverage of 800 MHz spectrum from the decommissioned IDEN network. Spectrum isn't their problem. Their problem is they suck at implementing any improvements. I was a Sprint customer for 11 years. They have nothing but empty promises.

2. WillieFDiaz

Posts: 127; Member since: Dec 22, 2010

Sprint wants to win customers, it has to learn the first thing in customer service.. Listening and making positive active changes for the customer. Competing on price alone does not make it competitive, but rather the plan it offers needs to be competitive. Perhaps adding international options, getting their tiered data plans to move up and down like Fair and Flexible plans did in the early 2000s.. Use more data, it goes to the next tier and if you use less, goes down to the tier prior. Perhaps overage forgiveness, once every 6 months, matching tablet data to phone data plans like T-Mobile does ($10 for you to share data between the devices) and special 1 month free for every 12 months you stick with Sprint. While they work on this network issue, this is the least they can do, but follow through and allow users to keep these options after the network is fixed.

9. downphoenix

Posts: 3165; Member since: Jun 19, 2010

indeed, or maybe other incentives like ending activation fees. This is the kind of outside the box thinking they need (And exactly the kind of stuff that got T-mobile to get so many gains in customers and win them over in overall perception), yet all they are doing is parroting Verizon and AT&Ts plans and saying they will give double the data... except people will then just point out that their data is much slower and would have a lot of trouble even using that amt. Granted, the iphone for life thing is a bit outside of the box, but it also segregates it to where only iphone buyers get the benefit, everyone that doesn't want an iphone gets screwed.

14. lsutigers

Posts: 832; Member since: Mar 08, 2009

In my recent experience traveling throughout the country with our new iPhone 6, Sprint has made huge improvements to their network and it shows. Speeds in Spark markets are very fast, and indoor coverage in the new Nextel 800mhz LTE band is excellent. Having a triband Spark phone makes a world of difference as our company just upgraded us from iPhone 5's which are single band LTE. I have to say, Sprint's network improvements are impressive and I get very good service, close to what I get on my personal Verizon phone.

3. bugsbunny00

Posts: 2266; Member since: Jun 07, 2013

slash some phone prices while you at it..

4. AustinPaul

Posts: 155; Member since: Dec 13, 2011

First - and most difficult challenge for Sprint is to improve the network. I left them last Dec after 15 years. Ironically, with AT&T, I now have phone connection issues that I never had with Sprint. However, as soon as I leave my house, my data coverage has been much improved over Sprint. Hoping they can make it.

5. fjftokyo

Posts: 65; Member since: Jun 06, 2013

Cancelling my two lines with Sprint and Jumping on the prepaid all set plans from Verizon $65 for unlim, talk. text and 4gb's of 4g data with no contract on the US's largerst network, what more do you want?

7. a_merryman

Posts: 749; Member since: Dec 14, 2011

I'm not going to lie, this sounds like it came straight from a VZW commercial XD

6. eman99

Posts: 410; Member since: Aug 03, 2010

please sprint just sell out to tmobile only way to survive

15. DonkeySauce

Posts: 194; Member since: Dec 03, 2011

I don't think TMo is interested in acquiring Sprint.

10. DnB925Art

Posts: 1168; Member since: May 23, 2013

Been with Sprint for 6 years and they have improved a lot in my area. I get great LTE where I live and work. One thing they need to bring back is the customer loyalty programs they once had, such as yearly upgrades for example. Reward your loyal customers who have stuck with you. Another is to keep up with the upgrades. While I get great coverage where I live, I took a trip to So Cal this past weekend and there were many areas where I had pretty bad 3G coverage. You would think the 2nd largest metropolitan area in the country should have better coverage. You can't keep customers if data speeds are still as slow as driving on a So Cal freeway during commute hours.

11. MartyK

Posts: 1043; Member since: Apr 11, 2012

Sprint and T-mobile need buddy-up their tower and feq to help each other out. by sharing tower and radio they can save money and continue to build their network.

13. corporateJP

Posts: 2458; Member since: Nov 28, 2009

I feel bad for the employees, but not the company. This company has a bad history of being run by dipsh*ts, and it's still trending that way. At least Hesse had plans in line with the network they were offering. The new guy will give you Verizon/AT&T-style plans with the same sh*tty network (improvements are still lackadaisical). Sprint should be disolved and the spectrum reallocated to somebody else with half a clue...

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