-=Sprint (S) and and T-Mobile US (TMUS) : merger finally gets approval

• The New York Times reported that a judge is expected to rule in favor of its merger with T-Mobile US (TMUS) 
• 80 million subscribers

U.S. District Court Judge Victor Marrero on Feb. 11 cleared the merger. Several states had sued to block the union, saying it would harm wireless competition. The Federal Communications Commission and the Department of Justice approved the deal earlier with conditions.

T-Mobile, controlled by Deutsche Telekom (DTEGY), said it expects the merger to close as early as April 1.

When combined, T-Mobile/Sprint would own more radio spectrum than AT&T or Verizon, an important edge as 5G wireless services are rolled out.

"T-Mobile will finally have the deep block of 2.5 GHz mid-band spectrum they always coveted," MoffettNathanson analyst Craig Moffett said in a blog. "That will allow the new T-Mobile to mount the most credible threat either Verizon's or AT&T's network supremacy has ever faced."

T-Mobile Stock Fundamental Analysis

T-Mobile continues to lead the wireless services market in subscriber and revenue growth. Growth has cooled, though, since 2017 for all U.S. wireless companies with the market saturated.

Most consumers have unlimited data plans. They upgrade smartphones at a slower rate. Plus, data-gobbling mobile video hasn't panned out as a big moneymaker.

U.S. regulators blocked AT&T's proposed acquisition of T-Mobile in 2011. A rejuvenated T-Mobile in late 2013 unleashed its "Uncarrier"-branded marketing campaign along with aggressive price discounts. T-Mobile also upgraded its wireless network, closing a performance gap with Verizon.

The strategy paid off as T-Mobile grabbed the lion's share of coveted "postpaid" subscribers that spend more on wireless data services.

Competition appears to be heating up in early 2020, with Verizon turning more aggressive with promotions. Analysts expect Apple's (AAPL) rollout of a 5G iPhone to spark increased marketing.

T-Mobile Outlook With Sprint Merger Closing

When combined, the new T-Mobile/Sprint will have prime radio spectrum to launch 5G wireless services. T-Mobile has touted plans to provide in-home fixed wireless broadband services by 2024.

-=T-Mobile’s (TMUS) $26.5 billion takeover of rival Sprint (S) approved by U.S. regulators

• Regulators approved the deal despite fears of higher prices and job cuts

WASHINGTON (AP) — U.S. regulators have approved T-Mobile’s $26.5 billion takeover of rival Sprint, despite fears of higher prices and job cuts, in a deal that would leave just three major cellphone companies in the country.

Friday’s approval from the Justice Department and five state attorneys general comes after Sprint and T-Mobile agreed to conditions that would set up satellite-TV provider Dish as a smaller rival to Verizon, AT&T T, +0.87%   and the combined T-Mobile-Sprint company. The Justice Department’s antitrust chief, Makan Delrahim, said the conditions set up Dish “as a disruptive force in wireless.”

But attorneys general from other states and public-interest advocates say that Dish is hardly a replacement for Sprint as a stand-alone company and that the conditions fail to address the competitive harm the deal causes.

“By signing off on this merger, the Justice Department has done nothing to remedy the short- and long-term harms the loss of an independent Sprint will create for U.S. wireless users,” Free Press Research Director S. Derek Turner said.

A federal judge still must sign off on the approval, as it includes conditions for the new company. The Federal Communications Commission is also expected to give the takeover its blessing.

Dish is paying $5 billion for Sprint’s prepaid cellphone brands including Boost and Virgin Mobile — some 9 million customers — and some spectrum, or airwaves for wireless service, from the two companies. Dish will also be able to rent T-Mobile’s network for seven years while it builds its own.

Dish on Friday promised the FCC that it would build a nationwide network using next-generation “5G” technology by June 2023. But Dish is promising speeds that are only slightly higher than what’s typical today, even though 5G promises the potential for blazing speeds.

The Trump administration has not been consistent in its approach to media and telecom mergers. While the government went to court to block AT&T’s acquisition of Time Warner and then lost, the Justice Department allowed Disney to buy much of 21st Century Fox, a direct competitor, with only minor asset sales to get the deal done. Mergers between direct competitors have historically had a higher bar to clear at the Justice Department.

=Sprint (S) reported earnings on Wed 31 Oct 2018 (b/o)

Sprint beats by $0.06, beats on revs

Reports Q2 (Sep) earnings of $0.05 per share, $0.06 better thanthe S&P Capital IQ Consensus of ($0.01); revenues rose 6.4% year/year to $8.43 bln vs the $7.95 bln S&P Capital IQ Consensus.

Due to strong year-to-date performance, the company is increasing its expectation for adjusted EBITDA* to a range of $12.4 billion to $12.7 billion. The previous expectation was $12.0 billion to $12.5 billion.

Excluding the impact of the new revenue recognition standard, the company is also increasing its expectation for adjusted EBITDA* to a range of $11.7 billion to $12.0 billion.

The previous expectation was $11.3 billion to $11.8 billion.

The company expects cash capital expenditures excluding leased devices to be $5.0 billion to $5.5 billion. The previous expectation was $5.0 billion to $6.0 billion.

=Sprint (S) and T-Mobile (TMUS) agree to $26 billion merger

• A report commissioned by CTIA, a trade association for the wireless communications industry, states that South Korea and China maintain a lead over the United States when it comes to readiness for rolling out 5G. The T-Mobile and Sprint merger may or may not expedite the US’s position.

Sprint (S) & T-Mobile (TMUS) reach agreement to merge in all-stock transaction 

The co's announced they have entered into a definitive agreement to merge in an all-stock transaction at a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of 9.75 Sprint shares for each T-Mobile US share.

• Based on closing share prices on April 27, this represents a total implied enterprise value of approximately $59 billion for Sprint and approximately $146 billion for the combined company. The new company will have a strong closing balance sheet and a fully funded business plan with a strong foundation of secured investment grade debt at close.
• The combined company will be named T-Mobile, and it will be a force for positive change in the U.S. wireless, video, and broadband industries. The combination of spectrum holdings, resulting network scale, and expected run rate cost synergies of $6+ billion, representing a net present value (NPV) of $43+ billion will supercharge T-Mobile's Un-carrier strategy to disrupt the marketplace and lay the foundation for U.S. companies and innovators to lead in the 5G era.
• The Boards of Directors of T-Mobile and Sprint have approved the transaction. Deutsche Telekom (DTEGY) and SoftBank Group (SFTBY) are expected to hold approximately 42% and 27% of diluted economic ownership of the combined company, respectively, with the remaining approximately 31% held by the public. The Board will consist of 14 directors, 9 nominated by Deutsche Telekom and 4 nominated by SoftBank Group, including Masayoshi Son, Chairman and CEO of SoftBank Group, and Marcelo Claure, CEO of Sprint. John Legere, CEO of the New T-Mobile, will also serve as a director.

The transaction is expected to close no later than the first half of 2019.

=Sprint (S) and T-Mobile US (TMUS) : merger talks end

• Oct. 30:  The Nikkei Asian Review reported that Sprint's (S) parent company, SoftBank, plans to end merger talks between Sprint and T-Mobile US (TMUS). The two wireless names moved sharply lower following the report, but pared some of their losses after CNBC's David Faber said parts of the report were untrue.
• Nov. 4:  Sprint announced that discussions regarding a potential merger with T-Mobile (TMUS) have ended without an agreement being reached.

=Sprint (S), T-Mobile (TMUS) : merger talks?

•  Potential merger os Sprint (S) with T-Mobile (TMUS) as CNBC reports the co's are in talks regarding a stock-for-stock merger.

This week's biggest % winners & losers: May 1 - 5, 17 (wk 18)

The following are this week's top 20 percentage gainers and top 20 percentage losers, categorized by sectors (over $300 mln market cap and 100K average daily volume).

This week's top 20 % gainers

• Healthcare: MOH (66.43 +33.42%), MYGN (22.38 +21.7%), EXAS (35.43 +18.06%), FOMX (4.93 +17.1%)
• Industrials: ATSG (22.99 +25.01%), KTOS (9.08 +19.16%), HSC (15.55 +19.16%), SPXC (28.29 +17.58%), PBI (15.49 +16.55%)
• Consumer Discretionary: CHGG (11.49 +27.52%), RH (57.15 +19.14%), NYT (16.95 +17.3%)
• Information Technology: ANGI (10.71 +82.14%), FORM (14.25 +28.38%), OLED (111.3 +24.57%), IAC (100.45,  +21.01%), MELI (275.16 +20.2%), FEYE (14.82, +18.47%), FSLR (34.54 +16.89%)
• Telecommunication Services: STRP (161.49 +25.32%)

This week's top 20 % losers

• Healthcare: ITCI (9.35 -32.34%), MEDP (22.98 -27.53%), PBYI (30.7 -24.38%), CERS (3.33 -23.45%), CRIS (1.89 -21.9%), AMAG (19.1 -21.72%), PGNX (6.43 -18.81%), KPTI (8.32 -18.59%)
• Materials: RYI (10 -27.01%)
• Industrials: ARCB (19.75 -25.33%)
• Consumer Discretionary: NCMI (8.67 -27%), PBPB (11.35 -18.64%)
• Information Technology: TWLO (23.97 -27.47%), AMD (10.19 -23.38%)
• Energy: CIE (0.31 -21.89%)
• Consumer Staples: REV (19.3 -25.63%), AVP (3.7 -23.71%)
• Telecommunication Services: NIHD (0.47 -45.26%), FTR (1.46 -22.34%), S 

Sprint (S) reported earnings on Wed 3 May 17 (b/o)

** charts after earnings **

 

Sprint misses by $0.04, beats on revs :

• Reports Q4 (Mar) loss of $0.07 per share, $0.04 worse than the Capital IQ Consensus of ($0.03); revenues rose 5.8% year/year to $8.54 bln vs the $7.94 bln Capital IQ Consensus.
  • Total net additions were 187,000 in the quarter, including postpaid net losses of 118,000, prepaid net additions of 180,000, and wholesale and affiliate net additions of 125,000.
  • For the full year, total net additions were 1.9 million, including postpaid net additions of 811,000, prepaid net losses of 1.1 million, and wholesale and affiliate net additions of 2.1 million.
  • Postpaid phone churn was 1.58 percent and total postpaid churn was 1.75 percent in the quarter. For the full year, postpaid phone churn of 1.48 percent was the lowest in company history and total postpaid churn was 1.62 percent.
• Fiscal Year 2017 Outlook
  • The company expects Adjusted EBITDA of $10.7 billion to $11.2 billion.
  • The company expects operating income of $2 billion to $2.5 billion.
  • The company expects cash capital expenditures, excluding devices leased through indirect channels, of $3.5 billion to $4 billion.

Sprint (S) reported 4Q earnings on Tue 26 Jan 16 (before open)

** charts before earnings **

  

** charts after earnings **

 

Sprint beats by $0.05, misses on revs :

• Reports Q3 (Dec) loss of $0.21 per share, $0.05 better than the Capital IQ Consensus of ($0.26); revenues fell 9.7% year/year to $8.11 bln vs the $8.21 bln Capital IQ Consensus.

Key Metrics

• Total net additions were 491,000 compared to 967,000 in the prior year quarter.
• Postpaid net additions of 501,000 compared to 30,000 in the prior year quarter.
• Prepaid net losses of 491,000 compared to net additions of 410,000 in the prior year quarter.
• Wholesale and affiliate net additions of 481,000 compared to 527,000 in the prior year quarter .

Outlook

• As a result of accelerated cost reductions, the company is raising its guidance for fiscal year 2015 Adjusted EBITDA from its previous expectation of $6.8 billion to $7.1 billion to a range of $7.7 billion to $8 billion.
• The company is also raising its guidance for fiscal year 2015 operating income from its previous expectation of an operating loss of $50 million to $250 million to operating income of $100 million to $300 million.
• The company continues to expect fiscal year 2015 cash capital expenditures to be approximately $5 billion.
• The company's preliminary estimate for fiscal year 2016 Adjusted EBITDA is approximately $9.5 billion to $10 billion.

Cost Cutting

• Sprint remains on track to exceed its cost reduction target for fiscal 2015 and has realized a nearly $800 million reduction in cost of service and selling, general, and administrative expenses year-to-date, including $500 million in the third quarter. Sprint continues to progress toward a sustainable reduction of $2 billion or more of run rate operating expenses exiting fiscal 2016 and expects approximately $1 billion of transformation program costs, which are expected to be split relatively evenly between operating expenses and capital expenditures, to be incurred across fiscal 2015 and 2016 to achieve that run rate benefit.