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T-Mobile (TMUS) to Report Q2 Earnings: Is a Beat in Store?

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T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report second-quarter 2021 results on Jul 29, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 67.3%. It pulled off a trailing four-quarter earnings surprise of 188.3%, on average.

This Bellevue, WA-based wireless carrier is expected to have recorded year-over-year higher revenues in the second quarter. The performance is likely to have been driven by the Sprint merger and customer growth.

Factors at Play

T-Mobile’s network leadership continues to fuel customer momentum, delivering merger synergies and expanding its addressable markets.

During the quarter, T-Mobile expanded its collaboration with Lumen Technologies to allow access to Lumen’s Edge Computing platform over its industry-leading 5G network, enabling enterprises to manage applications across distributed environments.

T-Mobile brought the Samsung Galaxy A32 5G and A52 5G to its stores. It is considered the leader with the most Android smartphone customers in the United States. The Samsung Galaxy A02s and A12 also came to T-Mobile and Metro by T-Mobile.

T-Mobile partnered with Zyter, Inc. to bring virtual healthcare solutions to healthcare organizations and their patients across the country. Zyter delivers a wide range of cloud-based, software as a service digital health products.

T-Mobile introduced SyncUP TRACKER, an addition to its SyncUP line of products. Leveraging T-Mobile’s nationwide LTE network, SyncUP TRACKER is a device which, when paired with the SyncUP TRACKER app available on iOS and Android, helps keep track of valuable items.

T-Mobile introduced services that are designed to support the revival of America’s small businesses in the post-pandemic, digital-first world. Such developments are likely to have had a positive impact on T-Mobile’s top line.

For the June quarter, the Zacks Consensus Estimate for revenues is pegged at $19,391 million, which indicates growth of 9.7% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 52 cents, which suggests a decline of 14.8%. The fall is likely due to an increase in expenses, resulting from the Sprint merger.

What Our Model Says

Our proven model predicts an earnings beat for T-Mobile this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s exactly the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: T-Mobile’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +18.09% as the former is pegged at 61 cents and the latter at 52 cents.

TMobile US, Inc. Price and EPS Surprise

TMobile US, Inc. Price and EPS Surprise

TMobile US, Inc. price-eps-surprise | TMobile US, Inc. Quote

Zacks Rank: T-Mobile currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

LyondellBasell Industries N.V. (LYB - Free Report) is slated to release second-quarter 2021 results on Jul 30. It has an Earnings ESP of +6.99% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AdvanSix Inc. (ASIX - Free Report) is scheduled to release second-quarter 2021 results on Jul 30. The company has an Earnings ESP of +21.30% and a Zacks Rank #2.

Avient Corp. (AVNT - Free Report) has an Earnings ESP of +2.47% and a Zacks Rank #2. The company is set to report second-quarter 2021 results on Jul 30.