Ask Matt: Can Sprint finally start to run?

Q: Can Sprint finally start to run?

A: The nation’s smallest wireless telecom carrier, Sprint (S), is attempting to show investors it can be a contender. It’s going to take some more convincing.

The company Tuesday reported it lost 15 cents a share on an adjusted basis during the quarter. That was a relief for investors who feared the company would lose up to 26 cents a share, says S&P Capital IQ. Shares of the company jumped 20% to close Tuesday at $3 a share. But this company is far from being out of its challenging situation of trying to get back into the black and reinvigorating growth amid tough competition. The company is expected to post adjusted quarterly losses at least until the first quarter of 2017, says S&P Capital IQ. Revenue in fiscal 2017 is also seen as being up just 3% to $33.7 billion, says S&P Capital IQ.

Given that losses are seen continuing for the foreseeable future, it’s hard for investors to find a reason to be all that excited about the stock. Despite the fact Sprint shares are down 42% over the past year, analysts remain unconvinced there’s much value here. The average analyst thinks the stock could be worth $4 a share in 18 months, which is 33% upside, but getting there isn’t going to be easy given the pricing pressures in the industry. Analysts rate the stock a “hold.”

USA TODAY markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.