Sprint Corp. (NYSE: S) on Tuesday reported mix earnings results for the fiscal fourth quarter.
Quarterly loss widened more than expected while adjusted earnings beat analysts’ estimates as cost cuts
The company posted a loss of $554 million, or 14 cents a share, for the quarter ended March 31, compared with a loss of $224 million, or 6 cents a share, a year earlier. Adjusted earnings before interest, depreciation and amortization for the period were $2.16 billion, topping analysts’ estimate of $2.02 billion on average.
Sprint had been providing deeper discount than its rivals Verizon Communication Inc, AT&T and T-Mobile US to gain market shares. The company offered promotions such as $1 iPhones charging customers half the cost of their bills with other carriers.
But the price-cutting seems not bringing more customers. The company added 447,000 subscribers in the fourth quarter. Analysts had projected total net additions of 518,100 on average, according to research firm FactSet StreetAccount.
The Overland Park, Kansas-based company said it cut $1.3 billion in cost during the year. In October, the company said it was trying to cut as much as $2.5 billion in costs in the following six months.
“Fiscal 2015 was a transformational year in the turnaround of Sprint,” said Chief Executive Marcelo Claure.
For this year, the company expects operating income will be $1 billion to $1.5 billion, up from $310 million it posted for the year ended March 31. The company also forecast adjusted Ebitda for fiscal 2016 to be $9.5 billion to $10 billion.
Sprint shares rose 2.7 percent to $3.6 at 11:35 a.m. in New York.