Telecom & Wireless

What to Look for in T-Mobile Earnings

Chris Lange

Published: April 25, 2016 11:45 am

Last Updated: January 13, 2020 10:20 am

T-Mobile US Inc. (NASDAQ: TMUS) is scheduled to release its earnings before the markets open on Tuesday. The consensus estimates from Thomson Reuters are $0.10 in earnings per share (EPS) on $8.40 billion in revenue. In the same period of last year, the carrier posted a net loss of $0.09 per share and revenue of $7.78 billion.

Some analysts believe T-Mobile should be bought on an increasing cash flow and valuation thesis. It provides mobile communications services in the United States, Puerto Rico and the U.S. Virgin Islands. It offers voice, messaging and data services in the postpaid, prepaid and wholesale markets. It also provides wireless devices, including smartphones, tablets and other mobile communication devices, as well as accessories that are manufactured by various suppliers.

The company offers services, devices and accessories under the T-Mobile and MetroPCS brands through its owned and operated retail stores, as well as through its websites. T-Mobile also sells its devices and accessories to dealers and other third-party distributors for resale through independent third-party retail outlets and websites. It serves approximately 63 million customers.

T-Mobile’s competitor Verizon had softer-than-expected earnings last week, which could imply that T-Mobile’s numbers might not be up to snuff for this quarter.

A few analysts weighed in T-Mobile prior to the earnings report:

• Barclays has an Overweight rating and a $49 price target.
• Macquarie initiated coverage with a Neutral rating.
• Pacific Crest reiterated a Buy rating with a $48 price target.
• Deutsche Bank reiterated a Buy rating with a $46 price target.

So far in 2016, T-Mobile has performed more or less in line with the broad markets, with the stock up 2.8% year to date. Over the past 52 weeks, the stock is up about 17%.

Shares of T-Mobile traded up 1.9% at $40.98 Monday morning, with a consensus analyst price target of $46.22 and a 52-week trading range of $32.90 to $43.43.