
Sprint (S) Stock Gains on Cost Cutting Plan
NEW YORK (TheStreet) -- Sprint Corp. (S) - Get Report stock is increasing 2.54% to $4.85 in early morning trading on Monday, after the wireless carrier reveled plans to cut costs by 10%, or $2.5 billion, in fiscal 2016, a company spokesman told Reuters.
The expense reductions will be made through a variety of cost controls and layoffs, but further details were not revealed because the budget process is in early stages.
"We are leaving no stone unturned and looking at all areas," a spokesman told Reuters.
Sprint will also consider cutting severance for employees who were laid off and suspending raises.
The company will release more details on the costs cuts when it reports its fiscal 2015 second quarter financial results, expected tomorrow before the market open.
Sprint is expected to post a narrower loss and a year-over-year decline in revenue.
Analysts surveyed by Thomson Reuters have estimated a loss of 8 cents per share on revenue of $8.12 billion for the latest quarter.
Last year, Sprint reported a loss of 19 cents per share on $8.49 billion in revenue for the fiscal 2014 second quarter.
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