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Will Higher Revenues Benefit T-Mobile (TMUS) Q3 Earnings?
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T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report third-quarter 2022 results on Oct 27 after the closing bell. In the last reported quarter, the company delivered a stellar earnings surprise of 248.8%. It pulled off a trailing four-quarter earnings surprise of 219.3%, on average.
The Bellevue, WA-based wireless service provider is expected to have recorded year-over-year higher revenues, driven by strong performance across its wireless businesses.
Factors at Play
In the third quarter, T-Mobile augmented its 5G footprint in the country by introducing 5G Home Internet services in states like Colorado, Iowa, Kansas, Missouri, Oklahoma, Maryland, Connecticut, Massachusetts, New Jersey, New York and Pennsylvania. The company has more than 1.5 million Home Internet customers, positioning itself as the fastest-growing broadband provider for the third quarter in a row. With the expansion, more than 40 million households are eligible for 5G Home Internet.
The Home Internet service offers fast, affordable home broadband connectivity through a 5G Gateway device and is accessible by all the devices in the home. It neither has any data caps nor charges any equipment fee for the Gateway device and is priced at a flat rate of $50 per month with AutoPay. Customers can even avail the service at $30 per month with Magenta MAX, T-Mobile’s most popular phone plan. It also requires no annual service contract and does not have any early termination fees for discontinuation of service.
In third-quarter 2022, the company, in association with Meta Platforms, Inc., offered Canva Pro free to all eligible small business customers. It also rolled out $200 of free advertising to entice customers. T-Mobile launched new Magenta for Business plans, along with Microsoft 365, at no additional cost on up to two lines per account. New or existing customers of Magenta for Business, Business Unlimited Ultimate+ and Business Unlimited Advanced plan with three lines or more will be provided with greater value from their business plans comprising Scam Shield Premium, Microsoft 365, Mobile hotspot data, six months of Canva Pro and $200 in Facebook or Instagram advertising credits. Such lucrative phone plans are likely to have generated healthy revenues in the quarter.
During the quarter, T-Mobile collaborated with SpaceX to bring Coverage Above and Beyond, which is a spectacular new plan designed to bring cell phone connectivity everywhere. T-Mobile, through its best-in-class wireless networks, is working to provide absolute coverage in all places of the United States, including remote locations where traditional cell signals fail to operate. This is likely to be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $20,076 million, which indicates growth from the year-ago quarter’s reported figure of $19,600 million. The consensus estimate for adjusted earnings per share stands at 54 cents, suggesting a marginal decline from 55 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for T-Mobile this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.95%, with the former pegged at 58 cents and the latter at 60 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: T-Mobile currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Earnings ESP for NETGEAR, Inc. (NTGR - Free Report) is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Image: Bigstock
Will Higher Revenues Benefit T-Mobile (TMUS) Q3 Earnings?
T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report third-quarter 2022 results on Oct 27 after the closing bell. In the last reported quarter, the company delivered a stellar earnings surprise of 248.8%. It pulled off a trailing four-quarter earnings surprise of 219.3%, on average.
The Bellevue, WA-based wireless service provider is expected to have recorded year-over-year higher revenues, driven by strong performance across its wireless businesses.
Factors at Play
In the third quarter, T-Mobile augmented its 5G footprint in the country by introducing 5G Home Internet services in states like Colorado, Iowa, Kansas, Missouri, Oklahoma, Maryland, Connecticut, Massachusetts, New Jersey, New York and Pennsylvania. The company has more than 1.5 million Home Internet customers, positioning itself as the fastest-growing broadband provider for the third quarter in a row. With the expansion, more than 40 million households are eligible for 5G Home Internet.
The Home Internet service offers fast, affordable home broadband connectivity through a 5G Gateway device and is accessible by all the devices in the home. It neither has any data caps nor charges any equipment fee for the Gateway device and is priced at a flat rate of $50 per month with AutoPay. Customers can even avail the service at $30 per month with Magenta MAX, T-Mobile’s most popular phone plan. It also requires no annual service contract and does not have any early termination fees for discontinuation of service.
In third-quarter 2022, the company, in association with Meta Platforms, Inc., offered Canva Pro free to all eligible small business customers. It also rolled out $200 of free advertising to entice customers. T-Mobile launched new Magenta for Business plans, along with Microsoft 365, at no additional cost on up to two lines per account. New or existing customers of Magenta for Business, Business Unlimited Ultimate+ and Business Unlimited Advanced plan with three lines or more will be provided with greater value from their business plans comprising Scam Shield Premium, Microsoft 365, Mobile hotspot data, six months of Canva Pro and $200 in Facebook or Instagram advertising credits. Such lucrative phone plans are likely to have generated healthy revenues in the quarter.
During the quarter, T-Mobile collaborated with SpaceX to bring Coverage Above and Beyond, which is a spectacular new plan designed to bring cell phone connectivity everywhere. T-Mobile, through its best-in-class wireless networks, is working to provide absolute coverage in all places of the United States, including remote locations where traditional cell signals fail to operate. This is likely to be reflected in the upcoming results.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $20,076 million, which indicates growth from the year-ago quarter’s reported figure of $19,600 million. The consensus estimate for adjusted earnings per share stands at 54 cents, suggesting a marginal decline from 55 cents reported in the prior year.
Earnings Whispers
Our proven model does not predict an earnings beat for T-Mobile this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -3.95%, with the former pegged at 58 cents and the latter at 60 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TMobile US, Inc. Price and EPS Surprise
TMobile US, Inc. price-eps-surprise | TMobile US, Inc. Quote
Zacks Rank: T-Mobile currently has a Zacks Rank #2.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Arista Networks, Inc. (ANET - Free Report) is set to release quarterly numbers on Oct 31. It has an Earnings ESP of +1.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for NETGEAR, Inc. (NTGR - Free Report) is +8.00% and it carries a Zacks Rank of 3. The company is set to report quarterly numbers on Oct 26.
The Earnings ESP for Apple Inc. (AAPL - Free Report) is +0.89% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Oct 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.