Sprint Corp. (NYSE:S) announced third quarter financial results on Tuesday morning, shares of this company jumped up 16% to $2.92 in premarket trading. Sprint boosted its guidance for the year and said its turnaround is beginning to take hold, as it reported the net loss for the latest quarter that wasn’t as much as Wall Street expectation.
According to the third quarter financial results, Sprint platform postpaid phone net additions of 366,000 compared with 205,000 net losses in the prior year quarter which was a big improvement of 571,000. The company also announced net operating revenue of $8.1 billion, operating loss of $197 million, and Adjusted EBITDA of $1.9 billion, and is raising its fiscal year 2015 Adjusted EBITDA guidance from the previous expectation of $6.8 billion to $7.1 billion to a range of $7.7 billion to $8 billion. In addition, the company’s preliminary estimate for the fiscal year 2016 Adjusted EBITDA is approximate $9.5 billion to $10 billion.
“It’s clear from our quarterly results that we are making great progress in achieving our goals,” said Sprint CEO Marcelo Claure. “Revenue has stabilized, costs are coming out faster than expected, postpaid phone net additions were the highest in three years, postpaid churn was the lowest-ever for a third quarter, and the network is performing at best-ever levels.”
In October 2015, the company mentioned it was preparing to reduce approximately $2.5 billion in costs in the next six months, as the company struggling to intensify its belt-tightening. Mr. Robbiati said in an internal memo those cost reduction would inevitably result in job reductions. According to filings, Sprint employed around 31,000 people at the end of March 2015. Analysts polled by Thomson Reuters had estimated net loss of $0.25 per share and revenue of $8.23 billio