Sprint Nextel Corp. shares plummeted Tuesday after a Wall Street analyst cut
his earnings forecast for the Overland Park company.
Shares fell as low as $5.55, down about 16 percent. At midday they were trading
at $6.13, down 59 cents, or about 9 percent, on heavy volume.
Michael Nelson, an analyst for Stanford Group in New York, issued a report that
lowered his projection for Sprints 2008 earnings per share, after certain
adjustments, to 23 cents from 46 cents.
The company is likely to take longer than expected to return to growth in
earnings after certain adjustments, Nelson wrote in the report.
We maintain our Hold rating on shares of Sprint, Nelson wrote. Sprint is a
Show Me story, in our view, as management must demonstrate an ability to
successfully execute against its restructuring plan before we feel comfortable
recommending the stock.
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