Sprint (S – Free Report) reported better-than-expected financial results in the third quarter of fiscal 2017.

Net Income

On a GAAP basis, Sprint’s third-quarter fiscal 2017 net income was $7,162 million or $1.79 per share against a net loss of $479 million or 12 cents in the year-ago quarter. However, after adjusting a one-time tax gain, fiscal third-quarter net loss was 2 cents compared with the Zacks Consensus Estimate of a loss of 4 cents.

Sprint Corporation Price, Consensus and EPS Surprise

Sprint Corporation Price, Consensus and EPS Surprise | S

Revenues

Quarterly total revenues totaled $8,239 million, down 3.6% year over year and above the Zacks Consensus Estimate of $8,178.2 million. Service revenues were $5,930 million, down 6.2%. Equipment revenues totaled $2,309 million, reflecting an improvement of 3.6%.

Operating Metrics

Operating expenses were $7,512 million compared with $8,238 million in the year-ago quarter. Operating income was $727 million compared with $311 million in the year-ago quarter. Adjusted EBITDA was $2,719 million compared with $2,450 million in the prior-year quarter. Adjusted EBITDA margin was 45.9% compared with 38.7% in the prior-year quarter.  

Cash Flow & Liquidity

In the quarter under review, Sprint generated $1,166 million of cash from operations compared with $650 million in the prior-year quarter. Adjusted free cash flow was $397 million compared with a loss of $646 million in the year-ago quarter.

As of Dec 31, 2017, Sprint had $4,440 million of cash and marketable securities compared with $2,870 million at the end of March 2017. Total debt outstanding was $32,825 million compared with $35,878 million at the end of March 2017.

Wireless Segment

Total segment revenues were $7,928 million, down 2.9% year over year. Postpaid revenues totaled $4,297 million, down 8.3%. Prepaid revenues were $993 million, up 0.8%. Wholesale revenues were $329 million, up 19.6%. Equipment revenues totaled $2,309 million, reflecting an increase of 3.6%.