Sprint Executive Summary
Company Overview
Sprint Nextel Corporation is principally a holding company operating principally through two divisions: Wireline and Wireless. Incorporated in 1938, Sprint is a communications company offering a range of wireless and wireline communications products and services that are designed and marketed to individual consumers, businesses, government subscribers and resellers. Its operations are organized to meet the needs of its targeted subscriber groups through focused communications solutions that incorporate the capabilities of its wireless and wireline services. Its services are provided through its ownership of extensive wireless networks, an all-digital global long distance network. The Company offers wireless and wireline …show more content…
Dan Hesse is the President and C.E.O. Sprint is a tier 1 global Internet access service provider. Sprint Nextel is the United States' third largest long distance provider by subscribers. In 2006, the Sprint Nextel exited the local landline telephone business, spinning those assets off into a newly created company named Embarq, which CenturyTel acquired in 2008. Sprint owns a 47.1% interest in Clearwire Corporation and also an 18% interest in NII Holdings, which operates under the Nextel brand in Argentina, Brazil, Chile, Mexico and Peru. Sprint Nextel was the first to offer a consumer available 4G phone, the HTC Evo 4G, in the United States on June 4, 2010. Prior to 2005, the company was known as Sprint Corporation. The company took its current name, Sprint Nextel Corporation, when it merged with Nextel Communications that …show more content…
The company’s stock price has reflected its struggling financial performance. The stock current 52 week range has been $2.10-$4.60, and beta of 1.09. The stock beta measures the volatility of the security in relation to the volatility of the benchmark market indice (which in this case is the overall financial market) that the stock is being compared to. Beta measures the part of the asset's statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio. Sprint’s stock Beta estimate Beta is calculated using regression analysis. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. Sprint’s beta of greater than 1 indicates that the security's price will be more volatile than the market by 9%. However three of Sprint’s major competitors have signficantly better beta estimates; AT&T 0.58, Verizon 0.51 & Duetsche Telekom 0.71 (Average Industry Beta 0.60). When measured against the Industry, Sprint’s stock has more volatility and is more susceptible market forces. Conversely, most high-tech Nasdaq-based stocks have a beta of greater than 1, offering the possibility
Sprint Nextel Corporation is principally a holding company operating principally through two divisions: Wireline and Wireless. Incorporated in 1938, Sprint is a communications company offering a range of wireless and wireline communications products and services that are designed and marketed to individual consumers, businesses, government subscribers and resellers. Its operations are organized to meet the needs of its targeted subscriber groups through focused communications solutions that incorporate the capabilities of its wireless and wireline services. Its services are provided through its ownership of extensive wireless networks, an all-digital global long distance network. The Company offers wireless and wireline …show more content…
Dan Hesse is the President and C.E.O. Sprint is a tier 1 global Internet access service provider. Sprint Nextel is the United States' third largest long distance provider by subscribers. In 2006, the Sprint Nextel exited the local landline telephone business, spinning those assets off into a newly created company named Embarq, which CenturyTel acquired in 2008. Sprint owns a 47.1% interest in Clearwire Corporation and also an 18% interest in NII Holdings, which operates under the Nextel brand in Argentina, Brazil, Chile, Mexico and Peru. Sprint Nextel was the first to offer a consumer available 4G phone, the HTC Evo 4G, in the United States on June 4, 2010. Prior to 2005, the company was known as Sprint Corporation. The company took its current name, Sprint Nextel Corporation, when it merged with Nextel Communications that …show more content…
The company’s stock price has reflected its struggling financial performance. The stock current 52 week range has been $2.10-$4.60, and beta of 1.09. The stock beta measures the volatility of the security in relation to the volatility of the benchmark market indice (which in this case is the overall financial market) that the stock is being compared to. Beta measures the part of the asset's statistical variance that cannot be removed by the diversification provided by the portfolio of many risky assets, because of the correlation of its returns with the returns of the other assets that are in the portfolio. Sprint’s stock Beta estimate Beta is calculated using regression analysis. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. Sprint’s beta of greater than 1 indicates that the security's price will be more volatile than the market by 9%. However three of Sprint’s major competitors have signficantly better beta estimates; AT&T 0.58, Verizon 0.51 & Duetsche Telekom 0.71 (Average Industry Beta 0.60). When measured against the Industry, Sprint’s stock has more volatility and is more susceptible market forces. Conversely, most high-tech Nasdaq-based stocks have a beta of greater than 1, offering the possibility