EarthLink Results Boost Stock, Priceline and Sprint Disappoint: Tech Winners & Losers

SAN FRANCISCO ( TheStreet) --  EarthLink (ELNK) stock shot to the moon on Tuesday after posting a smaller-than-expected quarterly loss while Priceline (PCLN) and Sprint (S) fell after reporting disappointing results.

EarthLink reported before the bell on Tuesday a net loss of 11 cents a share on revenue of $308.6 million, well below the 17 cents a share loss on revenue of $292.1 million that Wall Street had expected, according to analysts surveyed by Thomson Reuters

That performance drove the Atlanta-based managed network and cloud services provider up 16.5% to close at $4.09. 

"We've made significant improvements to our operations throughout the year, and those improvements are reflected in our third quarter financial results," Joseph Eazor, EarthLink CEO, said in a statement. "At the beginning of the year, we committed to becoming operationally excellent. We have more progress to make, but we've made significant strides in improving our processes and in delivering more cash flow in all areas of our company."


Priceline fell 8.4% to $1,097.70 after the online discount travel site posted third-quarter results and issued fourth-quarter guidance below analysts' expectations. Priceline, based in Norwalk, Conn., reported $20.03 a share, excluding one-time items, on revenue of $2.84 billion. Analysts had been expecting $21.11 a share on revenue of $2.83 billion, according to Thomson Reuters.

For the fourth quarter, Priceline expects earnings of $9.40 to $10.10 a share on revenue of about $1.82 billion. Analysts had been expecting $10.74 per share on revenue of $1.88 billion, according to analysts surveyed by Thomson Reuters.

A copy of the earnings call transcript can shed more light for investors who want to delve further into the company's finances. 

The company attributed its weaker than anticipated fourth quarter forecast to strong economic headwinds blowing out of Europe.


Sprint plunged 16.5% to $5.18 after reporting a bigger-than-expected loss after the bell on Monday. The stock reached a new 52-week low at one point on Tuesday when it touched $4.86.

The Overland Park, Kan., telecommunications carrier reported a loss of 19 cents a share on revenue of $8.49 billion, compared to a loss of 6 cents a share on revenue of $8.59 billion based on analysts polled by Thomson Reuters

In sizing up its quarterly performance, Sprint's new CEO Marcelo Claure had described the three-month period as a "transitional quarter" for the carrier. And when issuing its forecast, Sprint said it expects to see continued pressure on its wireless service revenue in the next quarter. That is largely due to the significant loss of postpaid cellular customers the company has experienced over the past few quarters.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates EARTHLINK HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate EARTHLINK HOLDINGS CORP (ELNK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

You can view the full analysis from the report here: ELNK Ratings Report

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