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Is a Beat in Store for T-Mobile (TMUS) This Earnings Season?

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T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report third-quarter 2021 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 50%. It pulled off a trailing four-quarter earnings surprise of 87.2%, on average.

The Bellevue, WA-based wireless carrier is expected to have recorded year-over-year higher revenues on the back of customer growth. It continues to expand its 5G network to bring fast and affordable wireless service across the country while helping Americans to get access to the latest products and technology.

Factors at Play

During the quarter, T-Mobile expanded its Home Internet service to 51 cities and towns across Florida, Georgia, North Carolina, and South Carolina. These are among the more than 600 places nationwide that already have access to T-Mobile Home Internet.

T-Mobile is a leading broadband provider with more than 30 million households eligible for its Home Internet service. It is committed to bringing affordable and reliable high-speed Internet to homes across the country.

T-Mobile intends to bring more competition to home broadband, especially in underserved rural markets. It is expanding access in places that never had a real choice when it came to home broadband. Investments in 5G network have enabled it to continue expanding access to this service.

T-Mobile’s Extended Range 5G covers 305 million people across 1.7 million square miles, and the superfast Ultra Capacity 5G covers 165 million of those people.

In the quarter, T-Mobile collaborated with Visual Labs to offer a cost-effective body-worn camera solution for first responders. As part of T-Mobile’s Connecting Heroes program, the initiative aims to establish a seamless critical communications infrastructure while ensuring the safety of communities. These developments are likely to have had a positive impact on T-Mobile’s performance.

For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $20,105 million, which indicates growth of 4.3% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 54 cents, which suggests a decline of 53.8%.

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 +13.06% as the former is pegged at 61 cents and the latter at 54 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:

Exelixis, Inc. (EXEL - Free Report) is slated to release third-quarter 2021 results on Nov 2. It has an Earnings ESP of +20.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Denny's Corporation (DENN - Free Report) is scheduled to release third-quarter 2021 results on Nov 2. The company has an Earnings ESP of +15.15% and a Zacks Rank #1.

Comstock Resources, Inc. (CRK - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank #1. The company is set to report third-quarter 2021 results on Nov 2.