GO
Loading...

Amid transition, what’s happening with Sprint?

(Click for video linked to a searchable transcript of this Mad Money segment)

With 2014 expected to be a transition year, what must you know about Sprint?

"Last year the company completely reorganized itself," Cramer reminded.

"Softbank, the giant Japanese firm, bought a 78% stake in Sprint, giving them a much needed capital infusion, and then Sprint turned around and bought the 50% of Clearwire that it didn't already own. The old Sprint-Nextel was reborn as the new Sprint," he explained.

Going forward, Sprint intends to build out its next-generation 4G-LTE wireless network, in an attempt to compete with Verizon and AT&T more aggressively.

David Paul Morris | Bloomberg | Getty Images

During an interview on Mad Money, Dan Hesse, the president and CEO of Sprint, told Jim Cramer the company is making excellent progress in the build out.

"We'll be about 2/3 of the way finished by the middle of the year," Hesse said. "And by the middle of the year we'll be finished with the rip and replace of the old network. We're tearing out every nut, bolt screw wire and replacing it entirely. We're going to spend $35 billion over 5 years to build a phenomenal network."

Meanwhile speculation has been swirling that #3 Sprint and #4 T-Mobile are looking to merge. Although Hesse wouldn't comment specifically he did tell Cramer, "Right now we have duopoly. Consolidation in the industry won't take a competitor out. It will leader to stronger and better competition with the industry going from two big strong competitors to three competitors."

Also it's worth noting, the new Sprint is winning more customers. Despite tough competition in the fourth quarter Sprint said it added 58,000 net subscribers compared with analyst expectations for subscriber losses

All told, Cramer is a fan of the transformation underway and at Sprint he thinks recent earnings confirm that company is moving in the right direction.

-----------------------------------------------------------------
Read more from Mad Money with Jim Cramer
Serious catalyst looming on edges of market
Price target bump reminiscent of Dotcom Bubble?
Momentum Monsters: Cramer's favorite hyper-growth plays
-----------------------------------------------------------------

Sprint said its loss narrowed to $1.04 billion, or 26 cents per share, in the fourth quarter, from $1.32 billion, or 44 cents per share, in the year-ago quarter.

The quarterly loss per share was much narrower than the average expectation for a loss of 33 cents per share according to Thomson Reuters I/B/E/S.

And revenue rose to $9.14 billion from $9.01 billion. The average analyst estimate was $8.97 billion, according to Thomson Reuters I/B/E/S.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book