We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
T-Mobile US (TMUS) Q2 Earnings & Revenues Beat Estimates
Read MoreHide Full Article
T-Mobile US Inc. (TMUS - Free Report) reported impressive financial results in the second quarter of 2017, wherein both the top and bottom line outpaced the Zacks Consensus Estimate. The company also raised its financial outlook for 2017.
T-Mobile US currently has a Zacks Rank #4 (Sell). The company competes with the likes of Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and Sprint Corp. (S - Free Report) in the highly price-sensitive U.S. wireless market. While AT&T currently has a Zacks Rank #4 (Sell), both Verizon and Sprint carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GAAP net income in the reported quarter was $582 million or 67 cents per share compared with a net income of $228 million or 25 cents in the year-ago quarter. Quarterly earnings per share of 67 cents were well above the Zacks Consensus Estimate of 36 cents.
Total revenue jumped 10% year over year to $10,213 million in the reported quarter, surpassing the Zacks Consensus Estimate of $9,852 million. Segment-wise, Service revenues were up 8.1% year over year to $7,445 million. Sales from Equipment totaled $2,506 million, up 14.5% year over year while Other revenues were $262 million, up 24.2% year over year.
Within the Service segment, branded postpaid revenues were $4,820 million, up 6.9% year over year. Branded prepaid revenues were $2,334 million, up 10.1%. Wholesale revenues were $234 million, up 13%. Roaming & Other services revenues were $57 million, up 7.5%.
Quarterly operating income was $1,416 million compared with $833 million in the year-ago quarter. Operating margin in the reported quarter was 13.9% compared with 9% in the prior-year quarter. Adjusted EBITDA was $3,012 million, up 19.1% year over year. Adjusted EBITDA margin was 29.5% compared with 27.2% in the year-ago quarter.
Cash Flow
In the second quarter of 2017, T-Mobile US generated $1,829 million of cash from operations compared with $1,768 million in the prior-year quarter. Free cash flow in the reported quarter was $482 million compared with $419 million in the year-ago quarter.
Liquidity
At the end of the second quarter of 2017, T-Mobile US had $181 million of cash and cash equivalents and $13,728 million of debt outstanding compared with $5,500 million and $22,186 million, respectively, at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.40 compared with 0.54 at the end of 2016.
Subscriber Statistics and Other Metrics
As of Jun 30, 2017, total customer base of T-Mobile US was 69.562 million, up 3.2% year over year. Branded postpaid phone customers totaled 32.881 million, up 6.5%. Branded postpaid mobile broadband customer count was 3.277 million, surging 19.3%. Branded prepaid customer count was 20.293 million, up 7.3%. Wholesale customers tallied 13.111 million, declining 11.7%.
In the reported quarter, T-Mobile US added net 0.786 million branded postpaid phone customers, 0.031 million branded postpaid mobile broadband customers, 0.094 million branded prepaid customers and 0.422 million wholesale customers. Total net customer addition was 1.333 million, signifying the 17th successive quarter of over 1 million net customer additions. Quarterly branded postpaid churn was 1.10% compared with 1.27% in the year-ago quarter. Branded prepaid churn was 3.91%, remaining flat year over year.
Quarterly branded postpaid phone average revenue per user (ARPU) was $47.01 compared with $47.11 in the prior-year quarter. Branded prepaid ARPU was $38.65 compared with $37.86 in the prior-year quarter. Branded postpaid average billing per user (ABPU) was $60.40 compared with $62.59 in the year-ago quarter.
T-Mobile US, Inc. Price, Consensus and EPS Surprise
For 2017, the company anticipates adjusted EBITDA to be in the range of $10.5 - $10.9 billion compared with the previous guidance of $10.4-$10.8 billion. Capital expenditure will be in the range of $4.8-$5.1 billion. The company expects branded postpaid net customer addition to fall in the range of 3.0-3.6 million compared with the previous guidance of 2.8-3.5 million.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
T-Mobile US (TMUS) Q2 Earnings & Revenues Beat Estimates
T-Mobile US Inc. (TMUS - Free Report) reported impressive financial results in the second quarter of 2017, wherein both the top and bottom line outpaced the Zacks Consensus Estimate. The company also raised its financial outlook for 2017.
T-Mobile US currently has a Zacks Rank #4 (Sell). The company competes with the likes of Verizon Communications Inc. (VZ - Free Report) , AT&T Inc. (T - Free Report) and Sprint Corp. (S - Free Report) in the highly price-sensitive U.S. wireless market. While AT&T currently has a Zacks Rank #4 (Sell), both Verizon and Sprint carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GAAP net income in the reported quarter was $582 million or 67 cents per share compared with a net income of $228 million or 25 cents in the year-ago quarter. Quarterly earnings per share of 67 cents were well above the Zacks Consensus Estimate of 36 cents.
Total revenue jumped 10% year over year to $10,213 million in the reported quarter, surpassing the Zacks Consensus Estimate of $9,852 million. Segment-wise, Service revenues were up 8.1% year over year to $7,445 million. Sales from Equipment totaled $2,506 million, up 14.5% year over year while Other revenues were $262 million, up 24.2% year over year.
Within the Service segment, branded postpaid revenues were $4,820 million, up 6.9% year over year. Branded prepaid revenues were $2,334 million, up 10.1%. Wholesale revenues were $234 million, up 13%. Roaming & Other services revenues were $57 million, up 7.5%.
Quarterly operating income was $1,416 million compared with $833 million in the year-ago quarter. Operating margin in the reported quarter was 13.9% compared with 9% in the prior-year quarter. Adjusted EBITDA was $3,012 million, up 19.1% year over year. Adjusted EBITDA margin was 29.5% compared with 27.2% in the year-ago quarter.
Cash Flow
In the second quarter of 2017, T-Mobile US generated $1,829 million of cash from operations compared with $1,768 million in the prior-year quarter. Free cash flow in the reported quarter was $482 million compared with $419 million in the year-ago quarter.
Liquidity
At the end of the second quarter of 2017, T-Mobile US had $181 million of cash and cash equivalents and $13,728 million of debt outstanding compared with $5,500 million and $22,186 million, respectively, at the end of 2016. The debt-to-capitalization ratio at the end of the reported quarter was 0.40 compared with 0.54 at the end of 2016.
Subscriber Statistics and Other Metrics
As of Jun 30, 2017, total customer base of T-Mobile US was 69.562 million, up 3.2% year over year. Branded postpaid phone customers totaled 32.881 million, up 6.5%. Branded postpaid mobile broadband customer count was 3.277 million, surging 19.3%. Branded prepaid customer count was 20.293 million, up 7.3%. Wholesale customers tallied 13.111 million, declining 11.7%.
In the reported quarter, T-Mobile US added net 0.786 million branded postpaid phone customers, 0.031 million branded postpaid mobile broadband customers, 0.094 million branded prepaid customers and 0.422 million wholesale customers. Total net customer addition was 1.333 million, signifying the 17th successive quarter of over 1 million net customer additions. Quarterly branded postpaid churn was 1.10% compared with 1.27% in the year-ago quarter. Branded prepaid churn was 3.91%, remaining flat year over year.
Quarterly branded postpaid phone average revenue per user (ARPU) was $47.01 compared with $47.11 in the prior-year quarter. Branded prepaid ARPU was $38.65 compared with $37.86 in the prior-year quarter. Branded postpaid average billing per user (ABPU) was $60.40 compared with $62.59 in the year-ago quarter.
T-Mobile US, Inc. Price, Consensus and EPS Surprise
T-Mobile US, Inc. Price, Consensus and EPS Surprise | T-Mobile US, Inc. Quote
Guidance
For 2017, the company anticipates adjusted EBITDA to be in the range of $10.5 - $10.9 billion compared with the previous guidance of $10.4-$10.8 billion. Capital expenditure will be in the range of $4.8-$5.1 billion. The company expects branded postpaid net customer addition to fall in the range of 3.0-3.6 million compared with the previous guidance of 2.8-3.5 million.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>