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Sprint (S) Set to Launch Two Device Management Solutions

Zacks Equity Research

Sprint Corporation S recently announced that it is adding two device management solutions of VMware, Inc. VMW as part of its offerings from security solutions portfolio. Notably, the VMware Workspace ONE and AirWatch Express solutions will empower companies with better management and security of applications and devices. These will also provide a unified endpoint management and a seamless user experience for access to applications.

As device management platform, both Workspace ONE and AirWatch Express solutions allow companies to offer employees with access to the necessary tools on their devices, while securing vital company data. As a matter of fact, the offerings will enable firms to efficiently manage all sorts of devices, save resources and time apart from deploying apps and configuring devices from remote locations.

The recent move is in sync with Sprint’s plan to come up with new ideas and solutions to better serve customers and help business enterprises improve their relationship with employees. Notably, with the offerings, the company will become the first carrier to provide AirWatch Express along with Workspace ONE to its customers in the United States.

Our Take

Sprint's strategy of balancing growth and profitability while increasing network investments and adding digital capabilities should drive its financial performance in the coming quarters. Also, the company’s multi-year plan to improve cost structure and its "Unlimited for All" plan designed for customers bode well.

The company remains on track to launch its mobile 5G network in nine of the largest cities in the United States. It has announced plans to unveil commercial 5G smartphones in the market in first-half 2019 in collaboration with electronics firm Samsung.

Notably, in the past three months, this Zacks Rank #3 (Hold) stock has rallied 9.4%, outperforming 9% growth recorded by the industry.

However, the company has been continually making efforts to lure customers from rival carriers by offering attractive promotional plans and lucrative discounts. This has resulted in high cash burn rate. Sprint also has a debt-laden balance sheet, which affects its cost of capital while trying to raise funds for network expansion.

Stocks to Consider

A couple of better-ranked stocks in the same space are CenturyLink, Inc. CTL and Telenav, Inc. TNAV. Both these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CenturyLink outpaced estimates in each of the trailing four quarters, the average positive earnings surprise being 23.40%.

Telenav surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 23.70%.

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