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Monday, May 4, 2009

Sprint misses, mulls outsourcing

The No. 3 U.S. wireless carrier's Q1 EPS fell 25% to 3 cents ex items, a penny below views. Revenue slid 12% to $8.21 bil, below views. Sprint Nextel (S) lost 182,000 net subscribers, an improvement from 1.3 mil lost in the previous quarter. The company, however, said it lost 1.25 mil valuable "postpaid" customers who sign contracts, an increase from the loss of 1.1 mil contract subscribers in Q4. Separately, published reports said Sprint may outsource management of its cell network and transfer 5,000-7,000 U.S. jobs to LM Ericsson (ERIC). Sprint rose 7% to 5.

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Posted by Senor Marquez at 10:11 PM

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