Photo: Illustration: Ellis Hamburger
Wild report from BTIG analyst Walter Piecyk on Sprint’s investor day:For weeks, Sprint’s management team has been avoiding all questions about their future by telling people to wait for today’s investor meeting in which they promised that all questions would be answered. After a slate of presentations that were far short on details, the Q&A session got ugly as the management team continued to avoid providing any detailed answers and in many cases offered responses so short and void of details that the CFO was actually laughed at. By the end, the CTO arrogantly admonished a questioner to “get your facts straight” rather than provide a detailed explanation of a plan that, when described as “ridiculous”, received applause from the audience. We believe Sprint is un-investable until they can provide better clarity on EBITDA, their 4G strategy and their capital structure. We also hope the board listens to the replay of the Q&A to hear what investors thought of the plan they approved.
How do you not know the iPhone impact?
We were surprised by the early positive movement in Sprint’s stock this morning based on the unsupported and generally generic statement by the CEO that the iPhone would be accretive over the long term. No details to support that statement were ever provided in a full day of investor presentations and a slide that purported to give an outlook on Sprint’s cash burn didn’t even include the impact of the iPhone on cash burn. The company admitted to scheduling this meeting on this date in part because of the timing of the iPhone, so the CFO had weeks to present its impact in his presentation.