Why Sprint Stock made a jump today – The Fool Motley

What happened

Wireless Service Provider # 4 Shares Sprint (NYSE: S) have jumped today, up 10% at 12:30 pm. EDT, after the company released its second quarter financial results. Executives hope that the merger with T Mobile (NASDAQ: TMUS), which also announced gains last night, could meet the regulations.

So what

Total revenues were $ 8.4 billion and service revenues increased for the first time in five years, excluding the impact of new revenue recognition standards. Net income amounts to $ 196 million or $ 0.05 per share. Results, both financial and financial, exceeded consensus estimates of $ 7.97 billion and a net loss of $ 0.01 per share.

Sprint reported net retail additions of 95,000. The company lost prepaid and wholesale customers but added 109,000 very large postpaid customers. Analysts expected the company to lose 10,000 net subscribers. The carrier closed the quarter with a total of 54.5 million connections.

Source of the image: T-Mobile.

Now what

Positive comments from management and tangible progress on the outstanding megamer have eclipsed the results. T-Mobile announced yesterday that it has received shareholder approval for the transaction. Although planned, this agreement brings us closer to the conclusion of the agreement, even though the biggest obstacle has always been regulatory approval, given the antitrust concerns.

"We are very respectful of the regulatory process, which is not yet over," said T-Mobile President and CEO John Legere at the call of Un-carrier's results last night. "We have gone through several important milestones and remain optimistic and confident that once the regulators have examined the facts, they will recognize the important pro-competitive and consumer benefits of this partnership."

Other analysts have expressed optimism that the deal could get regulatory approval, and T-Mobile expects it to be finalized in the first half of 2019. .