Sprint Nextel Corp. reiterated its financial targets for 2006, with the telecom carrier’s revenue projected at $41 billion or higher.
The Reston, Va.-based company, during its annual analysts meeting, also said cash flows likely will “substantially exceed investment needs.” Analysts, on average, have been looking for 2006 revenue of $46.5 billion, according to estimates compiled by Thomson First Call.
Said CEO Gary Forsee: “Sprint Nextel’s repositioning is nearly complete as we prepare to launch Embarq as its own independent company.” Embarq, encompassing the local telecom operations of the former Sprint Corp., is on track to be separated from Sprint Nextel during the second quarter.
Also, the company’s board may consider cash distributions in the form of stock repurchases or special dividends, but no plans for any such distributions have been drawn up to date, Sprint Nextel said. The company has announced that it expects to continue to pay nominal quarterly cash dividends on common stock following Embarq’s separation.