Financial Outlook for T-Mobile US, Ahead of Q4 Earnings Report
With a market cap of $254.3 billion, T-Mobile US, Inc. (TMUS), based in Bellevue, Washington, stands as a major player in the wireless service sector. The company provides mobile voice, messaging, and data services under its T-Mobile and Metro by T-Mobile brands, while also offering extensive 5G and 4G LTE networks. T-Mobile services are available across the U.S., Puerto Rico, and the U.S. Virgin Islands. Investors are looking forward to the company’s fiscal Q4 earnings, which are set to be released before the market opens on Wednesday, Jan. 29.
Anticipated Earnings and Historical Performance
As the earnings report approaches, analysts forecast TMUS will declare a profit of $2.17 per share, reflecting a nearly 30% rise from $1.67 per share reported during the same quarter last year. Notably, TMUS has beat Wall Street’s profit expectations in three of its last four quarters. In its most recent reporting period, the company surpassed the consensus EPS estimate by 10.1%.
Yearly Earnings Projections
For fiscal 2024, experts expect TMUS to report an EPS of $9.31, which marks a 34.3% increase from the $6.93 reported in fiscal 2023.
Stock Performance and Market Comparison
T-Mobile’s stock has increased by 35.2% over the past year, outperforming the S&P 500 Index’s ($SPX) 26.3% gain. However, it has slightly lagged behind the Communication Services Select Sector SPDR ETF Fund’s (XLC) nearly 36% rise during the same timeframe.
Recent Q3 Earnings Boost Investor Confidence
Shares of T-Mobile US rose by 5.7% following the release of its Q3 earnings on Oct. 23, which showcased strong financial results and significant subscriber growth. The company reported an EPS of $2.61, an impressive 43% year-over-year increase, along with a net income of $3.1 billion—exceeding revenue expectations of $20.2 billion. T-Mobile notably surpassed subscriber growth projections by adding 865,000 postpaid phone customers, outpacing the anticipated 727,500 additions. This achievement prompted the company to raise its 2024 guidance for postpaid net customer additions to 5.6-5.8 million, enhancing investor trust in its growth trajectory.
Analyst Ratings Overview
Currently, the overall opinion among analysts regarding T-Mobile stock is moderately positive, reflected in a “Moderate Buy” rating. Out of 27 analysts covering the stock, 17 advise a “Strong Buy,” three recommend a “Moderate Buy,” six suggest a “Hold,” while one analyst gives a “Strong Sell.” This distribution is notably less optimistic than three months ago, when the stock had 19 “Strong Buy” ratings.
As of now, TMUS shares are trading below the average analyst price target of $249.86.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
