Sprint Nextel, the United State’s third largest wireless provider, posted poor third quarter numbers as the company lost customers and revenue. Sprint Nextel earned $64 million, or 2 cents per share, compared with earning $379 million, or 9 cents per share, during the same period a year ago. Quarterly revenue declined 4.2 percent to $10 billion, missing analysts’ predictions of $10.45 billion.
Sprint Nextel lost 337,000 monthly subscriptions during the third quarter and 60,000 overall. In comparison, number one rival AT&T added a net 2 million customers, and number two Verizon Wireless grew by 1.6 million users.
Sprint Nextel’s difficulties in attracting and retaining customers over the last year forced Chairman and Chief Executive Office Gary Forsee to leave the company. Forsee led Sprint for four years and he oversaw Sprint’s acquisition of Nextel in 2005. The company’s stock has lost 28.5 percent of it value since the merger of the two companies.
We have argued in the past that a ‘back to the basics’ strategy is needed,” Goldman Sachs analyst Jason Armstrong wrote in a research report for clients, adding that he maintained his “neutral” rating of the stock. “As Sprint’s outlook deteriorates, investors are still searching for a plan to unlock the significant underlying asset value of the company.”