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T-Mobile US (TMUS) Beats Q2 Earnings and Revenues Estimate

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T-Mobile US Inc.(TMUS - Free Report) is a leading telecom operator in the U.S. providing high-end wireless and wireline services to individuals, business enterprises and government agencies.

The U.S. telecom industry is facing severe competitive pressure at present. Aggressive pricing competition and higher promotional activities are likely to hurt the company’s financial results. However, the company raised its guidance of EBIDTA and customer addition for 2016.

T-MobileUShas introduced the ‘Get Thanked’ program to execute a series of free giveaways and cash credits to its customers in order to minimize churn rate. Also, its latest ‘Stock Up’ promotional campaign is an innovative idea of granting a stock to its postpaid customers. We believe robust customer addition, particularly of branded postpaid customers, 4G LTE network expansion and the rising popularity of the Un-Carrier business will not only boost revenues but will also lend a competitive edge to the carrier.

T-MobileUScurrently carries a Zacks Rank #3 (Hold). The company has generated a positive average earnings surprise of 3.36% in the three of the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: The Company beats second quarter earnings. Our consensus called for EPS of 22 cents while the company reported EPS of 25 cents.

Revenue: T-Mobile US reported total revenue of $9,222 million surpassing the Zacks Consensus Estimate of $9,041 million.

T-MOBILE US INC Price and EPS Surprise

T-MOBILE US INC Price and EPS Surprise | T-MOBILE US INC Quote

Key States to Note: In the reported quarter, T-Mobile US added 0.89 million postpaid connections. Retail postpaid churn decreased to 1.27% from 1.32% in the prior-year quarter. At the end of second quarter, T-Mobile US had 33.626 million postpaid connections, up 14.7% year over year.Branded postpaid phone Average Revenue per User (ARPU) of $47.11 was down 2.2% year over year.

Check back later for our full write up on this T-Mobile US earnings report later!

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