Sprint Nextel Corporation (NYSE:S) Losses Broaden On Nextel Accusation


Dallas, Texas 08/05/2013 (Financialstrend) – Equities research forecasters at Macquarie slashed their price target on the scrip of Sprint Nextel Corp. (NYSE:S) to around $6.30 as compared to $6.50 in its message forwarded to shareholders.

The company presently possesses a “neutral” ranking on the scrip. Macquarie’s target value points out a potential shortcoming of 1.25 per cent as against its last closure.

The company has recorded net losses of $1.6 billion as against 2012’s losses, which remained at $1.4 billion.

After making adjustments for unanticipated charges associated with the closure of the Nextel network, the firm’s losses remained at 31 cents per share.

The company’s revenue augmented to some extent to around $8.88 billion this year as compared to $8.84 billion during the second quarterly period of 2012.

Market experts had been expecting the company to register losses that stay between 30 and 33 cents on income of $8.69 billion for the period under review.

The company’s scrip dropped around 3% in premarket trading initially before making recovery to some extent.

 Sprint Nextel breaks down the figures

Sprint Nextel Corporation (NYSE:S) registered that income from its Sprint stage wireless service increased by 8% to hit a novel record of $7.2 billion.

Operating losses remained at $875 million, comprising $430 million in wear and tear and $623 million in accusations owing to the closure of the Nextel group.

Nextel network close down

Sprint Nextel Corporation (NYSE:S) stated that the Nextel network was closed as per the plan, and over 4 million of its subscribers have been brought back to the Sprint podium since the Network Vision rollout started over 2 years back. This symbolizes a 44% postpaid recall rate, as per the wireless supplier.

The firm also stated that the “sturdy development” on the operation of Network Vision as more than 20,000 sites are currently on air.