Tuesday, January 16, 2007

Sprint Nextel rings weak

Technology woes, near-flat earnings on agenda as wireless carrier struggles to keep customers.

Technology problems, strong competitors and cost-conscious customers continue to bedevil Sprint Nextel Corp., as the company struggles to make good on a merger that looked so appealing when it was announced three years ago.

The Reston, Va.-based company announced last week that it had a net loss of more than 300,000 monthly subscribers during its fourth quarter and was cutting 5,000 jobs.

Sprint Nextel also said that it expected near-flat operating revenue and earnings for the coming fiscal year, as it continues to lose customers and increases its spending on marketing and adding capacity to its cellular network.

Company officials predicted a return to growth in the second quarter, but the stock has been trading at the low end of its 52-week range of $15.92 to $26.89.

source: The Beacon Journal

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