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T-Mobile US (TMUS) Beats Q3 Earnings, Revenues Mostly In Line

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

We remain concerned about T-Mobile US’ operation in the highly competitive and saturated U.S. wireless industry. Spectrum crunch is a major issue in the domestic telecom industry. Moreover, the entry of major cable companies like Comcast and Charter Communications will further intensify competition. Comcast has already completed the nationwide rollout of its wireless services, while Charter Communications is planning to launch wireless services in 2018.

On the other hand, T-Mobile US has decided to roll out 600 MHz wireless spectrum in its footprints. The company recently requested for Special Temporary Authority (STA) from the Federal Communications Commission (FCC) to test pre-commercial LTE Advanced (LTE-A) in El Paso, Texas, and Augusta, Georgia. The third-largest wireless operator in the United States will conduct LTE-A trial runs using multiple spectrum bands, 700 MHz, PCS and AWS spectrum licensed to T-Mobile US as well as AWS-3 spectrum that is held by the FCC.

T-Mobile US currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The company has generated a positive average earnings surprise of a substantial 48.9% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings: The Company beats third-quarter 2017 earnings. Our consensus called for EPS (earnings per share) of 44 cents while the company reported EPS of 63 cents.

Revenue:  T-Mobile US reported total revenue of $10,019 million, slightly below the Zacks Consensus Estimate of $10,022 million.

Key States to Note:  In the reported quarter, T-Mobile US added 0.817 million postpaid connections. Branded postpaid churn decreased to 1.23% from 1.32% in the prior-year quarter. At the end of the third quarter of 2017, T-Mobile US had 36.975 million postpaid connections, up 11.3% year over year. Branded postpaid phone Average Revenue per User (ARPU) of $46.93 was down 2.5% year over year.

Stock Price:  At the time of writing, the stock price of T-Mobile US was up nearly 1.64% in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is positive due to strong Q3 2017 financial results. We believe strong guidance for 2017 branded postpaid customer addition and substantial growth of services revenues are the primary reasons for this positive market sentiment.

T-Mobile US, Inc. Price and EPS Surprise

 

T-Mobile US, Inc. Price and EPS Surprise | T-Mobile US, Inc. Quote

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

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