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On Dec 31, we issued an updated research report on Sprint Corporation (NYSE:S) .
The U.S. communications service provider’s strategy of balancing growth and profitability while increasing network investments and adding digital capabilities should drive its financial performance in the coming quarters. It has enhanced its SD-WAN services reach to enable enterprises to more simply and efficiently manage global IT resources and applications across networks throughout Asia-Pacific, Latin America, North America and Europe. Also, the company’s multi-year plan to improve cost structure and its "Unlimited for All" plan designed for customers bode well.
The company is coming up with new ideas and solutions to better serve its customers and help business enterprises improve their relationship with employees. In November 2018, Sprint announced that it has joined forces with HTC to bring a powerful 5G mobile smart hub to customers. This will enable customers to experience Sprint 5G on multiple devices for content sharing, mobile gaming and entertainment among others with incredibly fast connectivity. The company continues to build a solid 5G device portfolio so that its users can be among the first to experience Sprint 5G next year.
Massive MIMO technology is integral to Sprint's 5G strategy and network build. The technology augments the capacity of the company’s LTE Advanced network and is software upgradable to 5G. With this, Sprint is likely to meet customers’ need for unlimited data and high-bandwidth applications. The company intends to launch its mobile 5G network in nine of the largest cities across the country — Atlanta, Chicago, Dallas, Houston, Kansas City, Los Angeles, New York City, Phoenix and Washington, DC — during the first half of 2019 with additional markets to be announced later.
For fiscal 2018, Sprint has raised its adjusted EBITDA guidance to the range of $12.4 billion to $12.7 billion from the previous projection of $12-$12.5 billion, owing to strong year-to-date performance. The Zacks Rank #2 (Buy) stock has gained 7.6% against a decline of 0.7% of the industry in the past six months.
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