Sprint Corp. reported a loss that narrower than expected as the company continued to add customers. The mobile carrier posted a loss of $142 million, or 4 cents per share, compared with a loss of $585 million, or 15 cents a share, a year ago. The result beat analysts’ estimates. Analyst had projected a loss of 8 cents per share in the quarter ended September. Revenue rose 3.4 percent to $8.25 billion, topping analysts’ estimates of $7.96 billion.
“The top line is now growing, we continue to take costs out of the business, and we are successfully raising money at materially lower rates,” Chief Executive Marcelo Claure said in prepared remarks.
The company also said it added 347,000 postpaid net subscribers during the second quarter, thanks to price discount against its rivals. This also marked its fifth consecutive quarterly increase for postpaid subscribers. Sprint’s postpaid churn rate for the latest quarter fell to 1.52% from 1.54% a year ago.
Although the company posted better-than-expected quarterly results, the stock dropped 8.67 percent to $6.32 in the early trading on Tuesday. Sprint's stock jumped 5.65 percent on Monday after the AT&T announced the deal with Time Warner.
"We took another step forward in our plan toward sustainable profitability and cash generation with this quarter’s results,” said CEO Marcelo Claure in a press release accompany earnings.
The company also raised guidance of full year operating income to $1.2-$1.7 billion from $1-$1.5 billion and reiterating expectations for earnings before interest, taxes, depreciation and amortization to be $9.5 billion to $10 billion.