Sprint Nextel (S) NewsBite - 2Q Loss and Weak Revenue Pull Down S

Posted on Wednesday, August 06, 2008 10:08 AM

Sprint Nextel (NYSE: S) opened at $7.76. So far today, the stock has hit a low of $7.54 and a high of $7.90. S is now trading at $7.62, down $0.93 (-10.88%). Over the last 52 weeks the stock has ranged from a low of $5.48 to a high of $20.85. Shares of S are declining this morning after the company reported a second-quarter loss of $344 million, or 12 cents per share. Excluding one-time items, S earned 6 cents per share, beating analysts' estimates of 3 cents per share. However, Sprint's $9.06 billion in revenue during the quarter fell below the $9.17 billion expected by analysts. Investors also seem to be concerned with the company's warning that it expects customer losses to increase again in the third quarter. Technical indicators for the stock are neutral and S&P gives S a neutral 3 STARS (out of 5) hold ranking. If you are looking for a hedged play on S the stock seems like it could be a candidate for a January out-of-the-money bear-call credit spread above the 10 range. [ABR-Seven Summits Strategic Investments NewsBite]