Sprint (S, Financial) has been struggling for almost three years for several reasons, but the stock has performed nicely this year, bouncing almost 200% from the February lows. Obviously, the company has outperformed the telecommunications market in the reference time period, and investors can expect its performance to remain impressive in the coming months.
Throughout the prior six quarters, the company’s revenue has been declining at an average of approximately 5.5%. In the most recent quarter, the company managed to deliver revenue of $8.01 billion. This figure represents a drop of just 0.2%, which is almost negligible.
Moreover, the company detailed that it has added around 173,000 postpaid phone subscribers throughout its fiscal first quarter. The figure detailed by the company is the  highest in nine years. Currently, the majority of its revenue is obtained from its wireless operations. Moreover, Sprint also governs a trivial broadband internet business for government agencies as well as corporations.
Over the past few years, the company’s postpaid phone subscribers count has declined abruptly, but now it seems like the company is finally starting to escalate its user base once again.
At present, approximately 77% of the company’s wireless service revenue is produced from its postpaid users, whereas 20% is produced from prepaid users. Wholesaling access to its network via mobile virtual network operators accounts for the remaining 3%.
While other carriers have ended the offer regarding new iPhone 7, Sprint is still offering a free iPhone 7. The company is leasing the iPhone 7, according to which, the company will get the iPhone back at the end of 18 months unless the user decides to purchase the phone or merely carry on leasing on a monthly basis.
No matter how you see it, the company stands in a great position to earn extra money in the long run by sacrificing profits in the short term. Furthermore, analysts project the company to escalate sales and bottom-line in the range of 3% to 5% per year during the impending five years.
Conclusion
Sprint has been sprinting ever since it hit its 52-week low level of $2.18. While the stock’s upward trajectory will not be as steep as it has been this year, investors can still expect it to continue moving higher at a decent pace, thereby making it a good investment.
Disclosure: I don't hold a position in the stocks mentioned in the article.
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