Based in Bellevue, Washington, T-Mobile US, Inc. (TMUS) is a leading telecommunications company that provides wireless voice, messaging, and data services. With a market cap of $210.39 billion, T-Mobile is renowned for its expansive 5G network and customer-centric approach. The company offers innovative solutions that enhance connectivity and communication across various sectors, including consumer, enterprise, and government markets. T-Mobile is set to announce its fiscal Q2 earnings results before the market opens on Wednesday, Jul. 31.
Ahead of the event, analysts expect TMUS to report a profit of $2.26 per share, up 21.5% from $1.86 per share in the year-ago quarter. In the last four quarters, the company has surpassed Wall Street’s bottom-line estimates in three and missed on another occasion.
T-Mobile's adjusted earnings of $2 per share for the last reported quarter surpassed the consensus estimate by 9.3%. Strong customer growth and operational efficiency drove the earnings beat.
For fiscal 2024, analysts expect TMUS to report EPS of $9.02, up 30.2% from $6.93 in fiscal 2023.
TMUS stock is up 12% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 17.7% gains and the S&P 500 Communication Sector SPDR’s (XLC) 18.8% returns over the same time frame.
On May 28, TMUS announced its acquisition of a majority stake in rival U.S. Cellular (USM) in a deal valued at $4.40 billion. This strategic move aims to enhance T-Mobile’s internet coverage in rural America by leveraging USM’s spectrum assets, leading to a marginal increase in TMUS stock following the announcement.
On Apr. 25, TMUS reported its Q1 results, with 218 thousand postpaid net account additions and 1.2 million postpaid net customer additions. The company’s total revenues were $19.59 billion, while net income was $2.37 billion. Additionally, T-Mobile raised its fiscal 2024 guidance for postpaid net customer additions to between 5.2 million and 5.6 million, up from the previous range of 5 million to 5.5 million.
The consensus opinion on TMUS stock is bullish, with an overall “Strong Buy” rating. Out of 20 analysts covering the stock, 16 advise a “Strong Buy” rating, three suggest a “Moderate Buy” rating, and one recommends a “Hold.”
This configuration is more bullish than three months ago when the stock had 14 “Strong Buy” ratings. TMUS' average analyst price target is $190.32, indicating a potential upside of 6% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
