Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Markets & Finance

Bear Stearns Cuts Sprint Nextel to Peer Perform


From Standard & Poor's Equity Research

Bear Stearns downgraded Sprint Nextel (S) to peer perform from outperform, noting that the company had a weak second quarter.

Analyst Phil Cusick says Sprint's $10.0 billion revenue vs. his $10.6 billion estimate is 5% lower than expected. He says Sprint's lowered guidance for revenue and earnings before interest taxes depreciation and amortization (EBITDA,) in addition to its raised guidance for capital expenditure, effectively squeezes free cash flow generation for the year. Sprint also announced a $6 billion stock buyback, below the $10 billion he was looking for. While the stock may seem cheap on a valuation basis, he does not expect a turnaround in operational and financial metrics until 2007 or beyond.


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus