Sprint recently made presentations to the FCC as part of its bid to gain approval for its merger with T-Mobile . The company painted a grim picture of its business, which it says is unable to “turn the corner”, while also indicating that a merger would create a stronger competitor to wireless behemoths AT&T and Verizon. In its presentation, Sprint explicitly mentions that there is no obvious path to solve its key business challenges as it needs to make network investments to drive user growth and ARPU, but it’s unable to meaningfully bolster its cash flows because of high subscriber defections and churn, which are forcing it to offer aggressive promotions. The company also said that it has already slashed about $10 billion in costs, indicating that cost-cutting is reaching its limit.

The presentation selectively focused on the negative aspects of Sprint’s business and is at odds with the company’s positive management commentary in its recent earnings call, where it emphasized its 12th straight quarter of postpaid phone subscriber growth and net profit. However, this narrative could be key in getting regulators to decide that the deal will be good for the company and U.S. wireless subscribers.  

We have created an interactive dashboard that outlines our expectations for Sprint over 2018 as well as fiscal 2019. You can modify the key drivers to arrive at your own revenue and EPS estimates for Sprint.