Sprint Corp. (NYSE: S)
This morning before the market opened, Sprint Corp. (S) announced earnings that beat expectations and sent shares surging 18% in the premarket session. S announced a narrower-than-expected loss of 21 cents per share compared to analyst expectations of 24 cents per share with revenue coming in at $8.11 billion. Sprint also announced an upbeat outlook for 2016 with an earnings range of $7.7-8 billion, which is up from the previous estimates of $6.8-7.1 billion. This is great news for Sprint investors as the company is getting on track for an excellent 2016. Shares have taken a beating the past few months and this may be the catalyst the company needs to get turned around. Currently analysts have an average price target of $3.84.
Shares of S hit premarket highs of $3.05, over a 20% gain from yesterdays close of $2.52, on above average volume. However, we should see some resistance come in at the $3.15 and $3.20 range while support should hold it up at the $2.80 and $2.50 levels. Sprint will be in play today so expect an increase in both volume and volatility. Shares are well below their 200-day moving average currently sitting at $4.26 but a close above yesterdays high of $3.05 will help the case for longs.
Looking back on the daily chart, shares of Sprint have been smoked as they recently hit yearly lows of $2.18. That’s a decrease of nearly 60% from the recent high of $5.45 back in March of 2015. Sprint desperately needed a catalyst to get buyers interested and this earnings release may have done it. Longer-term resistance will be at the $3.50 and $3.71 levels so they will be important pivot points to watch going forward. Ideally we would like to see this stock get a couple closes above the 9 and 20 moving averages over the next couple days which should indicate that longs are back in control and we could be in for higher prices.
“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,” said Chief Executive Marcelo Claure. (MarketWatch)
Sprint Corp. operates as a communication company, which offers a comprehensive range of wireless and wire line communications products and services to consumers, businesses and government users. The company operates through two segments: Wireless and Wireline. The Wireless segment offers wireless services on a postpaid and prepaid payment basis to retail subscribers and also on a wholesale and affiliate basis, which includes the sale of wireless services. The Wireline segment provides a broad suite of wireline voice and data communications services to other communications companies and targeted business and consumer subscribers. In addition, it also provides voice, data and IP communication services to Wireless segment, and IP and other services to cable Multiple System Operators. Sprint was founded on October 5, 2012 and is headquartered in Overland Park, KS. (MarketWatch)