In a research note released Friday, Wells Fargo Securities adjusted its Q4 2016 estimates for Sprint due to what it refers to as the “tougher wireless competitive environment.”
Sprint reportedly now expects phone churn to be flat with the prior quarter, which is a bit different from the original guidance of a sequential improvement in churn. “We credit this to a more competitive price plans reaction, with unlimited wireless data offerings from both AT&T and Verizon,” Wells Fargo Securities reported. “We also would note the March quarter tends to be a lower gross adds quarter for the industry (so smaller ‘pie’ overall).”
The equity research increased the postpay churn estimate to 1.57 percent for Sprint. Wells Fargo Securities’ postpay phone net adds estimate is 20,000 vs. 100,000 prior and 25,000 in the year-ago period. The research’s prepay net adds estimate is unchanged at 25,000. That compares to Street consensus of 100,000. Wells Fargo analysts also noted that they believe Sprint has gained some momentum via its Boost brand in Q4.