Business Corpus: Sprint Stock Rises, Profit Tops Views As Cost-Cutting Aids ResultsSprint on Wednesday reported fiscal second-quarter profit and revenue that topped expectations, as an accounting change boosted results. Sprint stock jumped nearly 8%. The post Sprint Stock Rises, Profit Tops Views As Cost-Cutting Aids Results appeared first on Investor's Business Daily.

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Sprint (S) on Wednesday reported fiscal second-quarter profit and revenue that topped expectations, as an accounting change boosted results and sent the stock up.

Owned by Japan-based SoftBank, Sprint said adjusted earnings were 6 cents a share, with revenue rising 6% to $8.433 billion. A year earlier, Sprint reported a 1-cent loss on sales of $7.93 billion. Analysts expected Sprint to report a 1-cent loss on sales of $7.97 billion for the period ended Sept. 30.

Sprint said a new revenue recognition standard had a positive impact of $178 million on reported net income. The new standard impacts the equipment sales, mostly phones of wireless phone companies.

Cost-cutting also boosted Sprint results.

Sprint reported earnings before interest, taxes, depreciation and amortization, or EBITDA, of $3.26 billion, topping estimates of $2.98 billion. Sprint raised adjusted EBITDA guidance to a range of $12.4 billion to $12.7 billion. Its earlier forecast was $12 billion to $12.5 billion.

Federal regulators are reviewing Sprint's proposed merger with T-Mobile US (TMUS). Owned by Deutsche Telekom (DTEGY), T-Mobile late Tuesday reported better-than-expected results.

Sprint Loses Postpaid Phone Subscribers

Sprint said it lost 34,000 postpaid phone companies in the September quarter. T-Mobile on Tuesday said it added 774,000 high-spending postpaid phone customers in the September quarter. That topped analyst estimates of 617,000 additions. AT&T earlier reported that it added 69,000 postpaid phone customers. Verizon added 295,000.

Sprint stock gained 7.8% to close at 6.12 on the stock market today.

Sprint stock has been in a trading range since the proposed merger with T-Mobile was announced in May. Amid October's sell-off in technology stocks, though, Sprint stock dipped below its 50-day-moving-average.

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