OVERLAND PARK, Kan.-Sprint reiterated its forecast for this year’s revenues and said it expects to grow “at a low single-digit percentage rate” next year, largely on the success of its wireless business. Sprint said its numbers do not reflect its recent merger announcement with Nextel Communications Inc.
Investors kept the company’s stock stable following the news at around $24.73 per share.
Sprint said in October it expected between $8.1 billion and $8.2 billion in earnings before interest, taxes, depreciation and amortization for its full fiscal year. The company said it expected wireless to produce nearly $4.2 billion in EBITDA. Sprint reiterated those forecasts, explaining that its wireless business is continuing to experience “high levels of voice and data customer usage and solid customer growth in the fourth quarter.”
An average of analysts polled by Thomson First Call predicts Sprint will report $27.44 billion in revenues this year.
For 2005, Sprint said it expects to report low, single-digit increases due to “strong growth” in wireless, steady performance in local and continuing top-line pressures in long distance. Sprint said it expects full-year 2005 EBITDA to be in a range of $8.5 billion to $8.7 billion, mainly driven by wireless revenues. The company said its full-year overall capital spending will be between $4 billion and $4.2 billion, with two-thirds of that earmarked for wireless. The company said those numbers do not take into account its merger with Nextel.
Thomson First Call analysts expect Sprint to report $28.18 billion in revenues next year.
Sprint will report its fourth-quarter and full-year earnings Feb. 3 and shortly thereafter will provide a more detailed update on its 2005 expectations.
