) is set to release its first-quarter fiscal 2014 results after
the market closes on Apr 29, 2014.
In the last quarter, the company delivered a positive 28.12%
earnings surprise. Let's see how things are shaping up for this
Factors to Consider This Quarter
2013 proved to be a milestone year for Sprint. The company
completed some major merger and acquisition deals with the likes
of SoftBank, Clearwire and
). Also, Sprint has terminated the Nextel network which
transformed it from a loss making entity to one of the fastest
growing wireless providers in the U.S. Further, the company is
nearing its network modernization and integration effort, which
will fortify its position in the wireless industry.
The company completed the conversion of 5,000 Clearwire LTE sites
in 2013 and expects to alter another 2,000 sites in the first
half of the year. By mid 2014, the company expects to begin
deploying 2.5 GHz network on selected sites covering around 100
million 2.5 GHz LTE POPs by the end of 2014.
As part of the Network Vision strategy, in 2013, Sprint launched
4G LTE in 340 markets, covering more than 200 million POPs, and
expects to cover approximately 250 million LTE POPs by the second
half of 2014. In terms of 3G infrastructure, the company expects
to see a 25% increase in 3G data speeds with new equipment and
The company also remains focused on developing a HD voice
platform, which is expected to cover the entire nation by
mid-2014. Currently, the company has over 12 million customers
using its HD voice capable handsets.
However, substantial iPhone subsidies, higher spending and
competitive threats may act as headwinds for the company while
Our proven model does not conclusively show that Sprint is likely
to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive Earnings ESP and a
Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to
happen. Unfortunately, this is not the case here as elaborated
below. The Sell-rated stocks (#4 and 5) should never be
considered going into an earnings announcement.
The Most Accurate estimate and the Zacks Consensus Estimate are
poised at a loss of 6 cents. Hence, the ESP is 0.00%.
Zacks Rank #3 (Hold):
Sprint's Zacks Rank #3 decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of 0.00% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise for
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
Level 3 Communications, Inc.
) has Earnings ESP of +10.71% and sports a Zacks Rank #1.
) has Earnings ESP of +1.47% and carries a Zacks Rank #3.
AMER MOVIL-ADR (AMX): Free Stock Analysis
BCE INC (BCE): Free Stock Analysis Report
LEVEL 3 COMM (LVLT): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
US CELLULAR (USM): Free Stock Analysis Report
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America Movil S.A.B. de C.V.
) has Earnings ESP of +31.71% and carries a Zacks Rank #3.