T-Mobile US (TMUS - Free Report) is an U.S. national provider of mobile communications services. Based in Bellevue, WA, T-Mobile US operates its flagship brands, T-Mobile and MetroPCS.
T-Mobile US is on track with its innovative network expansion methodologies and improvement plans, stellar network performance, deployment of LTE-U technology and offering of attractive unlimited data plans. This is supported by improving scale, healthy free cash flow generation, strong liquidity and valuable spectrum assets that also provide credit support.
Meanwhile, the company’s share repurchases look encouraging. The stock buybacks were backed by the company’s strong balance sheet and cash flow generation. The company is likely to maintain the flexible liquidity scenario in the upcoming quarter.
Additionally, the company’s rating was upgraded to Ba2 by Moody's, with its rating outlook being confirmed stable. The company decided to roll out 600 MHz wireless spectrum in its footprints and has conducted successful Narrowband Internet of Things (NB-IoT) tests, live on its commercial network. T-Mobile US is also planning to team up with dark fiber partners to backhaul small cell densification project.
On the flip side, the company continues to struggle in a highly competitive and saturated wireless market where success depends on technical superiority, quality of services and scalability.Moreover, the domestic wireless industry is likely to become more competitive in 2018 with the entry of cable operators like Comcast and Charter Communications. Launch of several low-priced service plans for individual consumers and small business entities lead to high cash burn for the company.
Zacks Rank: 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.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: T-Mobile US’ beats fourth-quarter 2017 earnings. Our consensus called for an adjusted EPS (earnings per share) of 37 cents while the company reported an adjusted EPS of 48 cents. Investors should note that the adjusted EPS figures exclude the impacts of the Tax Cuts and Jobs Act and other net tax benefits, spectrum gains and hurricane impacts
Revenue: T-Mobile US reported total revenue of $10,759 million, up 5.1% year over year but lagged the Zacks Consensus Estimate of $10,886 million.
Key States to Note: In the reported quarter, T-Mobile US added net 0.891 million branded postpaid phone customers, 0.181 million branded postpaid other customers, 0.149 million branded prepaid customers and 0.633 million wholesale customers. Total net customer addition was 1.854 million, signifying the 19th successive quarter of over 1 million net customer additions. Quarterly branded postpaid phone churn was 1.18% compared with 1.28% in the year-ago quarter. Branded prepaid churn was 4.00% compared with 3.94% in the year-ago quarter.
Check back later for our full write up on this T-Mobile US earnings report later!
(NOTE: We are reissuing this article to correct an error. The original version, published earlier today, February 8, 2018, should no longer be relied upon.)
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