Sprint, the No. 4 U.S. wireless carrier, just reported their first quarter results, and revenue came in a lot better than expected. The company also expects to be cash flow positive next fiscal year after breaking even this year and aims to slash costs by more than $2 billion this fiscal year.
Shares of the stock soared neary 30% on Monday, and had their biggest intra-day gain ever.
For the fiscal year ending March 31st, Sprint had negative cash flow of $3.17 billion. According to CFO Tarek Robbiati, “We expect that we will have adequate sources to provide all the capital necessary to fund the business and repay the debt maturities due in FY 16.”
The company also had their biggest increase in phone subscribers in any first quarter in nine years. Sprint added a net 173,000 postpaid phone subscribers in the three months ended June 30. This is compared with a net loss of 12,000 subscribers in the same period last year.
In the report, Spring revealed that net operating revenue fell marginally to $8.01 billion. Analysts on average had expected $7.98 billion, according to Thomson Reuters I/B/E/S.
Disclaimer: We have no position in Sprint Corp (NYSE: S) and have not been compensated for this article.