Sprint Quarterly Earnings Report: Bad News

Hm, maybe that "disgruntled investor" knew something we didn't: Sprint's earnings on their profits were way, way down this past quarter. A 90% drop is bad news, indeed. MocoNews does note that Sprint is still making money on data, which surprises me a little because their rates for unlimited data are bargain basement compared to the other carriers.

If you ignore the costs of merging with Nextel and paying severance to all the people they've laid off as a result of that merger, they actually beat estimates - but costs is costs, and last quarter costs were way up.

Income was $19 million for the quarter compared to $291 million a year ago: Earnings per share fell by 90 percent year on year to 1 cent.[...] There was good news on the data side though: Total data service revenues increased 40 percent year-on-year and 4 percent sequentially.

Sprint also has the whole Qualcomm chip ban on the brain - they're trying to get Qualcomm and Broadcom to settle, but are also working on their own workaround, which may or may not involve just paying the piper like Verizon did.

Read: mocoNews.net

WC Staff