Here’s a story that we’re going to see more of. Sprint Nextel (S) cut costs but still posted a fourth-quarter loss of $1.6 billion. Still, that’s a lot better than last year’s loss of $29 billion.
“Chief Executive Officer Dan Hesse has slashed the size of Sprint’s workforce by 14 percent, cut down on office equipment and offloaded the WiMax mobile Internet unit in a bid to shore up finances. Sprint aims to win back customers by stepping up marketing of its Boost prepaid service and introducing the Palm Pre smart phone later this year.
“Excluding severance costs, amortization and other expenses, the loss was 1 cent a share, compared with a 4-cent loss predicted by analysts in a Bloomberg survey. They estimated sales of $8.54 billion.
“The company expects customer losses to improve in 2009, after losing 4.5 million customers last year. Sprint’s capital spending will stay at last year’s levels, excluding the money Sprint spent building out the WiMax network.”
My advice: Steer clear of Sprint. The stock is rated Sell in Portfolio Grader. Let’s see how well the cost-cutting goes before buying this stock.