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Will Top-Line Growth Boost T-Mobile's (TMUS) Q1 Earnings?
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T-Mobile US, Inc. (TMUS - Free Report) is set to report first-quarter 2024 results on Apr 25, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 1.33%. The wireless service provider is expected to witness a top-line expansion year over year, backed by growing demand for its postpaid services. Management’s focus on developing advanced 5G use cases is a tailwind.
Factors at Play
During the quarter, T-Mobile joined forces with the leading AI-powered customer intelligence platform Dialpad to launch Ai Recaps, an AI-enabled communication solution designed to revolutionize professional interactions across industries. Dialpad also extended its strategic partnership with T-Mobile for an additional three years, which began in 2021. T-Mobile launched 5G Home Internet service in Puerto Rico to deliver robust broadband connectivity in the region. These developments are likely to have supported the top line in the first quarter..
In the quarter under review, the company inked a 10-year agreement with Veteran Affairs to provide seamless communications and boost healthcare operations spanning 15 locations across Puerto Rico and the U.S. Virgin Islands.
Leveraging an advanced feature called Uplink Transmit switching, T-Mobile demonstrated record-breaking uplink speeds of 345 Mbps on its 5G standalone network. These are likely to have a favorable impact in the upcoming results.
Key Developments in Q1
In the to-be-reported quarter, T-Mobile has joined forces with SpaceX to launch Starlink satellites with Direct-to-Cell services in the United States. Starlink's Direct-to-Cell technology ensures dependable text, voice and data services for LTE phones worldwide, even in regions where ground network infrastructure is limited. Following the successful launch of its services, T-Mobile customers will have text coverage everywhere in the United States. Voice, data and IoT services are likely to be available in upcoming years.
Overall Expectations
Our estimate for total service revenues is pegged at $16.2 billion, suggesting 4.2% year-over-year growth. Our estimate for equipment revenues is pegged at $3.1 billion, indicating a 15.6% decrease year over year. Branded postpaid and prepaid ARPUs are likely to witness an improvement year over year.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $19.69 billion, which indicates an improvement from the year-ago quarter’s reported figure of $19.63 billion. The consensus estimate for adjusted earnings per share stands at $1.89, up from $1.58 reported a year ago.
Earnings Whispers
Our proven model does not conclusively 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. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -4.07%. The Most Accurate Estimate is pegged at $1.82, while the Zacks Consensus Estimate stands at $1.89. 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 #3.
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:
Meta Platforms (META - Free Report) is scheduled to report quarterly numbers on Apr 24. It has an Earnings ESP of +0.62% and a Zacks Rank of 2.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +1.68% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on May 22.
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Will Top-Line Growth Boost T-Mobile's (TMUS) Q1 Earnings?
T-Mobile US, Inc. (TMUS - Free Report) is set to report first-quarter 2024 results on Apr 25, after the closing bell. In the trailing four quarters, the company delivered an earnings surprise of 1.33%. The wireless service provider is expected to witness a top-line expansion year over year, backed by growing demand for its postpaid services. Management’s focus on developing advanced 5G use cases is a tailwind.
Factors at Play
During the quarter, T-Mobile joined forces with the leading AI-powered customer intelligence platform Dialpad to launch Ai Recaps, an AI-enabled communication solution designed to revolutionize professional interactions across industries. Dialpad also extended its strategic partnership with T-Mobile for an additional three years, which began in 2021. T-Mobile launched 5G Home Internet service in Puerto Rico to deliver robust broadband connectivity in the region. These developments are likely to have supported the top line in the first quarter..
In the quarter under review, the company inked a 10-year agreement with Veteran Affairs to provide seamless communications and boost healthcare operations spanning 15 locations across Puerto Rico and the U.S. Virgin Islands.
Leveraging an advanced feature called Uplink Transmit switching, T-Mobile demonstrated record-breaking uplink speeds of 345 Mbps on its 5G standalone network. These are likely to have a favorable impact in the upcoming results.
Key Developments in Q1
In the to-be-reported quarter, T-Mobile has joined forces with SpaceX to launch Starlink satellites with Direct-to-Cell services in the United States. Starlink's Direct-to-Cell technology ensures dependable text, voice and data services for LTE phones worldwide, even in regions where ground network infrastructure is limited. Following the successful launch of its services, T-Mobile customers will have text coverage everywhere in the United States. Voice, data and IoT services are likely to be available in upcoming years.
Overall Expectations
Our estimate for total service revenues is pegged at $16.2 billion, suggesting 4.2% year-over-year growth. Our estimate for equipment revenues is pegged at $3.1 billion, indicating a 15.6% decrease year over year. Branded postpaid and prepaid ARPUs are likely to witness an improvement year over year.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $19.69 billion, which indicates an improvement from the year-ago quarter’s reported figure of $19.63 billion. The consensus estimate for adjusted earnings per share stands at $1.89, up from $1.58 reported a year ago.
Earnings Whispers
Our proven model does not conclusively 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. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -4.07%. The Most Accurate Estimate is pegged at $1.82, while the Zacks Consensus Estimate stands at $1.89. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
T-Mobile US, Inc. Price and EPS Surprise
T-Mobile US, Inc. price-eps-surprise | T-Mobile US, Inc. Quote
Zacks Rank: T-Mobile currently has a Zacks Rank #3.
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:
Qualcomm Incorporated (QCOM - Free Report) is set to release quarterly numbers on May 1. It has an Earnings ESP of +2.78% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meta Platforms (META - Free Report) is scheduled to report quarterly numbers on Apr 24. It has an Earnings ESP of +0.62% and a Zacks Rank of 2.
The Earnings ESP for NVIDIA Corporation (NVDA - Free Report) is +1.68% and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on May 22.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.