Sprint Q4 Results Disappoint
Sprint Nextel’s revival is going to take a long, long time.
That was apparent in the company’s fourth quarter financial results, announced this morning. Sprint reported fourth quarter revenue of $8.5 billion, down 2% sequentially and 6% year over year, and well short of the Street consensus of $9.9 billion. The company blamed the lower revenues on its wireless operations.
The company reported a loss from continuing operations of $10.36 a share, reflecting $10.42 in losses from special items; that would put the pro forma number at a profit of 6 cents, well below the Street consensus or 18 cents.
Also, the company said it will stop paying a dividend “for the foreseeable future.” Sprint also said that it borrowed $2.5 billion yesterday on its revolving credit facility “to provide greater financial flexibility and to mitigate any potential refinancing risk related to $1.25 billion in bonds that mature in November 2008,” as well as $400 million in commercial paper and $600 million of bonds that mature in May 2009. The company has $500 million left on the revolver.
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