Shares of Sprint Corporation (NYSE: S) opened nearly 7 percent higher on Tuesday after it reported its first quarter fiscal earnings for this year, the first time in three years that the company has posted a quarterly profit.
The telecom giant, controlled by Japan’s SoftBank, reported a net income of $206 million, or 5 cents per share, compared to a loss of $302 million, or 8 cents per share, in 2016. Analysts had expected a loss of 1 cent per share. Revenue totalled to $8.16 billion, compared to $8.01 billion in the previous year and analysts’ expectations of $8.11 billion.
The company noted that the quarterly profit was a result of thousands of job cuts last year, which cut $4 billion from operating costs. According to CNBC, Sprint said it cut its cost of services and selling, general and administrative expenses by about $370 million in the quarter and that it expects an additional $1.3 billion to $1.5 billion of year-over-year reductions in fiscal 2017. The corporation added 88,000 new contract subscribers this quarter.
Sprint continues to explore merger opportunities with rival carrier, T-Mobile US (NASDAQ: TMUS), and cable provider, Charter Communications. (NASDAQ: CHTR).
“Sprint reached an important milestone this quarter by returning to profitability for the first time in three years,” CEO Marcelo Claure said in a press release. “This represents the progress of a turnaround journey that has delivered improvements in postpaid phone and prepaid customer growth, a return to top-line growth, and a significantly transformed cost structure.”