Here’s some great news out of the Sprint camp. In Q2 of 2010, Sprint added (yes, added) 111,000 postpaid subscribers to its CDMA network and had the lowest churn rate in company history, 1.85% for the quarter. This is the first time in three years that Sprint had positive net wireless subscriber growth. The company did post a net loss of $760 million or $0.25 per share. Dan Hesse, Sprint Nextel’s CEO, had this to say: “Our intense focus for the past ten quarters on improving the customer experience, strengthening our brands, and generating cash are paying off. With strong cash flow, stable OIBDA and widespread third-party recognition for the improvements we’re making in the customer experience, which in turn strengthens our brands, we feel we can confidently improve our subscriber forecasts for the second half of 2010 and deliver positive total net wireless subscriber additions for the remainder of the year.” Sprint also reminded you that their 4G service will be rolling out to eight new markets during Q3, including: Boston, Kansas City, New York, San Francisco, and Washington, D.C. Nice work Sprint. More →
Sprint is slated to announce its Q2 2010 earnings on Wednesday and analysts are weighing in on the expected performance of the nation’s #3 wireless carrier. Though it is still losing customers to its competition, Sprint is expected to show improvement year over year in the important postpaid category, with the carrier losing approximately 425,000 customers in Q2 2010 as compared to the 991,000 loss reported in the same quarter last year. Analyst Brett Feldman of Deutsche Bank notes that part of this improved performance can be attributed to sales of the HTC EVO 4G, which lowered subscriber loss by 100,000 and potentially kept this important financial figure under the half million mark. These numbers would have been better had Sprint been able to meet customer demand for the EVO 4G, but constant shortages have plagued this 4G handset. With the Samsung EPIC 4G slated to drop later this year and, hopefully, the EVO 4G back on the shelves, Sprint’s upcoming performance in the growing 4G postpaid market looks promising. Do you agree? More →
Verizon Communications, Inc. has just announced their Q2 earnings, and included in the massive statement is the results for Verizon Wireless (a venture owned by both Verizon Communications and Vodafone). What did Q2 look like for Big Red? Well, Verizon Wireless posted revenues of $16 billion (up 3.4% YoY), had an operating margin of 30.3% (up 2.5% from the previous quarter), and saw its churn rate drop slightly; down to 1.27%. The company added 1.4 million net customers (665,000 of which were postpaid), and now has a portfolio containing over 92.1 million customers coast-to-coast. We’ve got the full press release all linked up for you. More →
Global leader in mobile Nokia, posted their Q2 2010 numbers this morning, and to be honest, they are just okay. The Finnish company posted net sales of €10 billion, which is up 1% year-over-year — but down 4% when adjusted for constant currency — and had net sales of €6.8 billion — which is up 3% year-over-year but again down 2% when adjusted for constant currency. Earnings per share came in at €0.06, down from €0.10 in Q2 of 2010, and Nokia sold a total 111.1 million handsets (it’s odd saying a company sold 111.1 million anythings and had a mediocre quarter). Here is what Nokia CEO, Olli-Pekka Kallasvuo, had to say about his company’s Q2:
Despite facing continuing competitive challenges, we ended the second quarter with several reasons to be optimistic about our future. For one, the global handset market has continued to grow at a healthy pace, led by some of the less mature markets where Nokia is strong. We are also encouraged by the solid second quarter performance of our Mobile Phones business, helped by an improving line-up of affordable models.
In smartphones, we continue to renew our portfolio. We believe that the Nokia N8, the first of our Symbian^3 devices, will have a user experience superior to that of any smartphone Nokia has created. The Nokia N8 will be followed soon thereafter by further Symbian^3 smartphones that we are confident will give the platform broader appeal and reach, and kick-start Nokia’s fightback at the higher end of the market. More →
Right before Q2 earning go live, Deutsche Bank has knighted Sprint with the coveted “buy” rating. DB noted that they “expect Sprint’s 2Q results to highlight continued improvements in its post paid ops,” which prompted Deutsche Bank to reduced their estimate for post-paid net losses from 500,000 to 400,000 for the quarter. The firms analysts credit strong sales of the HTC EVO 4G — the first 3G/4G hybrid smartphone — for Sprint’s lower churn rate (2.05%) and 42% year-over-year growth in post-paid customer additions (gross). Sprint is scheduled to announce earnings for Q2 2010 on Wednesday July 28th. More →
Mountain View, CA search juggernaut Google has announced their Q2 2010 financial results… and it all looks very good. Google posted revenue of $6.82 billion for the quarter (up 24% YoY), a net income of $1.84 billion (up from $1.48 billion), an effective tax rate of 24%, cash, cash equivalents, and short-term marketable securities of $30.1 billion, and an additional 1,200 employees. Other highlights from Q2 include:
- Google-owned sites generated revenues of $4.50 billion, or 66% of total revenues
- Google’s partner sites generated revenues, through AdSense programs, of $2.06 billion, or 30% of total revenues
Hit the read link for the full financial disclosure. More →
Intel has just announced earning for the second quarter of 2010, and what a quarter it was. Intel posted a revenue of $10.8 billion (up 34 percent year-over-year), operating income of $4 billion, net income of $2.9 billion, and an EPS of 51 cents. Not bad! Intel’s CEO, Paul Otellini, said, “Strong demand from corporate customers for our most advanced microprocessors helped Intel achieve the best quarter in the company’s 42-year history.” Highlights from Intel’s Q2 stat sheet are as follows:
- PC Client Group revenue was up 2 percent sequentially, with record mobile microprocessor revenue.
- Data Center Group revenue was up 13 percent sequentially, with record server microprocessor revenue.
- Intel® Atom™ microprocessor and chipset revenue of $413 million, up 16 percent sequentially.
- The average selling price (ASP) for microprocessors was slightly up sequentially.
- Gross margin was 67 percent, 3 percentage points higher than the midpoint of the company’s expected range of 62 to 66 percent.
- R&D plus MG&A spending was $3.25 billion, higher than the company’s prior expectation of approximately $3.1 billion.
- The net gain from equity investments and interest and other was $204 million, higher than the company’s revised expectation of $180 million.
- The effective tax rate was 31 percent, slightly below the company’s revised expectation of approximately 32 percent.
The WSJ is reporting that Taiwanese handset maker HTC saw Q2 unaudited net profits rise 33% in 2010. Some key metrics from HTC’s Q2 include: $268 million in unedited profit, earnings of $0.37/share, and revenue growth of 58% (beating out HTC’s April forecast of 50% growth). Yuanta Securities analyst, Bonnie Chang, predicts that HTC will ship over 20 million handsets this year, up from 12 million in 2009. All-in-all a very impressive Q2 for HTC. More →
Last week, Macquarie Group analyst, Phil Cusik, warned that Nokia would have to cut it’s Q2 and FY2010 smartphone forecasts. Today, Mr. Cusik’s warning has become a reality. Bloomberg is reporting that Nokia cut its forecasts due to “a lack of high-end devices and a weaker euro.” Nokia’s stock reacted to the news by dropping 7% to 7.37€. More →
FierceWirelss is reporting that Macquarie Group analyst, Phil Cusik, anticipates Nokia to issue a Q2 profit warning as early as next week. Cusik cites: lower demand in Europe, a weak Euro, and “stale” products as the basis for his profit warming prediction. In April, Nokia had foretasted sales of handsets and services to be roughly $8 billion in Q2. The world’s number one handset manufacturer is scheduled to announce earnings on July 22nd. More →
Apple posted its Q2 2010 results and to say they’re impressive would be an understatement. Beating analyst expectations in practically every way possible, the Cupertino company sold 2.94 million Macs, 8.75 million iPhones and 10.89 million iPods. Analysts were only expecting 2.7 million iMacs, 6.8 million iPhones and 9 million iPods to be sold. In terms of cold, hard cash, Apple’s revenue was $13.5 billion with a diluted earnings per share of $3.33 making for a net profit of $3.07 billion. As for the current quarter, Apple is expecting revenue to hit $13.0 billion to $13.4 billion with a diluted earnings per share from $2.28 to $2.39.