Who They Are: Sprint Nextel offers a comprehensive range of wireless and wireline communications services to consumer, business and government customers. It trades an average of 40.6 million shares per day with a market cap of $10 billion. 52-Week Range: $2.12 to $5.35 Book Value: $3.53 Float Short: 6.6% Sprint is expected to report another loss when it releases second-quarter earnings before the market opens on July 26. The analyst consensus estimate is for a loss of 41 cents a share, a decline of 35 cents from a loss of 6 cents in the same period last year. Analyst opinion is mixed about this company. Most of the analysts surveyed don't believe a buy or a sell is currently warranted. Right now, Sprint gets seven buy recommendations out of 26 analysts covering the company, 15 holds and four sells. While the share price has bounced off its lows, shareholders from a year ago have not been rewarded for their patience. Sprint shares fell 37% in the last year, and the average analyst target price for S is $3.62. Sprint reached the average target price, making it reasonable to assume that target price increases are coming soon. In light of the earnings report date, analysts may wait until Sprint reports to update their predictions. The company is expected to post rising year-over-year revenue of $32.56 billion for last fiscal year, compared to $32.26 billion in the previous year. The bottom line shows falling earnings of a year-over-year loss of $3.47 billion last fiscal year, compared to a loss of $2.44 billion in the previous year. Weinstein Estimate: Sprint beats by at least 10 cents per share. The previous Sprint's earnings release was on April 25, and the closing share price before earnings was $2.43. At a price of $3.66, Sprint has soared more than 50% in the last quarter. In the last month, the stock has climbed 7.8%. Sprint beat earnings in all of the last four quarters, with an average beat of 7 cents per share (36.1%).
Who They Are: AT&T trades an average of 20.1 million shares per day with a marketcap of $207.3 billion. 52-Week Range: $27.41 to $36.20 Book Value: $17.86 Price To Book: 1.99 Float Short: 1.45% AT&T is expected to report strong second-quarter earnings before the market opens on July 24. The consensus estimate is currently for earnings of 63 cents a share, up 4.8% from 60 cents in the same period last year. Analysts are more or less sidestepping this one like a politician dancing the Washington two-step. Eighteen out of 30 analysts rate AT&T a hold, which could mean everything from "I want to rate it a sell, but that would not be good for business," to "I have no clue." Eleven analysts recommend buying the stock and one recommends selling. T Revenue Per Share TTM data by YCharts
Analyst expectations are falling, and 10 analysts now rate AT&T a "strong buy" down from 11 analysts a month ago. The stock appreciated 15.6% in the last year, and the average analyst target price for AT&T is $34.69. In the last month, the stock has fallen 1%.
For the same year-over-year fiscal period, revenue has improved to $124.28 billion last fiscal year, compared to $123.02 billion in the previous year. The bottom line has rising earnings year-over-year of $19.86 billion last fiscal year, compared to $12.14 billion in the previous year. The last date AT&T released earnings was April 24, and the closing price before earnings was $31.72. With a recent closing price of $36.19, its shares have appreciated more than 14% in the last quarter. AT&T once held an exclusive contract with Apple. That is over, but AT&T now has one with Nokia to sell the Lumia 900, which was, for a while, seizing substantial smartphone buzz. Lumia is powered by Microsoft's mobile software, and after Microsoft backstopped Nokia with free software and other aid, some thought Microsoft and Nokia might have found the comeback trail for mobile. Obviously, a big hit with an exclusive product would be a big win for AT&T. Hopes for the Microsoft-powered Lumia 900 quickly faded when Nokia announced it lowered the price for AT&T by $100. The upside for AT&T is they are pocketing $50 and lowering the price for consumers by $50. Since Microsoft is giving away its software anyway, the lower price doesn't have an impact other than to keep the product moving off the shelves and into the hands of consumers. Everything else being equal, the price drop is a win for Microsoft. Weinstein Estimate: AT&T beats by 2 or more cents per share. At the time of publication, the author did not hold a position in any stock mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.