Are You Expecting This from Sprint Nextel?

Sprint Nextel (NYSE: S  ) is expected to report Q4 earnings on Feb. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Sprint Nextel's revenues will grow 2.3% and EPS will remain in the red.

The average estimate for revenue is $8.92 billion. On the bottom line, the average EPS estimate is -$0.44.

Revenue details
Last quarter, Sprint Nextel reported revenue of $8.76 billion. GAAP reported sales were 5.2% higher than the prior-year quarter's $8.33 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.25. GAAP EPS were -$0.26 for Q3 versus -$0.10 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 41.9%, 280 basis points worse than the prior-year quarter. Operating margin was 2.2%, 30 basis points worse than the prior-year quarter. Net margin was -8.8%, 520 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $35.27 billion. The average EPS estimate is -$1.36.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 2,032 members out of 2,502 rating the stock outperform, and 470 members rating it underperform. Among 450 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 348 give Sprint Nextel a green thumbs-up, and 102 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Sprint Nextel is outperform, with an average price target of $5.23.

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