Shares of Sprint opened almost 7% higher on Tuesday after the telecom company reported a quarterly profit for the first time in three years.
Sprint is popping after its first positive earnings report in three years (S)
The number four US telecom needed an earnings boost after years of tough quarters.
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The fourth-largest carrier in the US, controlled by Japan’s SoftBank, reported a net income of $206 million, or 5 cents per share, for the first quarter of this fiscal year. Analysts had expected a loss of 1 cent per share.
The profit is largely a result of thousands of job cuts last year, which trimmed $4 billion from the Kansas-based company’s operating costs.
Aggressive new promotions to court new subscribers led to 61,000 new connections during the quarter, Sprint said, including 88,000 new post-paid subscribers — it’s most lucrative segment.
“Sprint reached an important milestone this quarter by returning to profitability for the first time in three years,” CEO Claure said in a press release“This represents the progress of a turnaround journey that has delivered improvements in postpaid phone and prepaid customer growth, a return to top-line growth, and a significantly transformed cost structure.”
Sprint’s stock price is up 36% over the last 12 months.