We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will Higher Revenues Buoy T-Mobile's (TMUS) Q1 Earnings?
Read MoreHide Full Article
T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report first-quarter 2020 results on May 6, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 4.8%. Notably, the company has a trailing four-quarter positive earnings surprise of 19.5%, on average.
The Bellevue, WA-based wireless carrier is expected to have recorded higher aggregate revenues on a year-over-year basis on inherent strength of its business model amid intense competition. The performance was supported by customer growth while T-Mobile continued to deploy a nationwide 5G network and worked to close its merger with Sprint.
Let’s discuss the factors that are likely to get reflected on the upcoming quarterly announcement.
Factors at Play
During the quarter under review, T-Mobile introduced GoTo, its new line of accessories with all the device essentials, giving customers price-right options for outfitting their phones and tablets. T-Mobile launched 5G in Lafayette, Charleston, Huntington, Jackson and Evansville. The company deployed an additional 600 MHz spectrum from multiple companies, doubling a total of 600 MHz LTE capacity across the nation. This is helping T-Mobile, Metro by T-Mobile and partner customers stay connected during the COVID-19 pandemic. Investments to build a nationwide 4G LTE network, which covers more than 327 million U.S. citizens is likely to have aided the company’s performance.
The company joined forces with YouTube to give its customers two months of free YouTube Premium through T-Mobile Tuesdays, which started on Mar 24. It launched T-Mobile Connect, its lowest-priced smartphone plan ever. Metro by T-Mobile has added lower-cost options to help ensure everyone has an affordable option to stay connected during these challenging times. The company is currently offering five 5G-capable smartphones, the OnePlus 7T Pro 5G McLaren, Samsung Galaxy Note10+ 5G, Samsung Galaxy S20 5G, Samsung Galaxy S20+ 5G and Samsung Galaxy S20 Ultra 5G. The company’s first-quarter performance is expected to have benefited from these developments.
The Zacks Consensus Estimate for revenues in the Service segment, which account for the lion’s share of total revenues, is pegged at $13,574 million. This indicates an increase of 64% from the year-ago quarter’s reported figure. Revenues in Equipment are estimated to be $4,979 million, which calls for a rise of 97.9% from the prior-year quarter’s reported figure.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $18,968 million that indicates a rise of 71.2% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 74 cents, which calls for a decline of 36.8% from the prior-year quarter’s recorded figure.
What Our Model Says
Our proven model doesn’t 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 odds of an earnings beat. But that’s not 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 +25.79% as the former is pegged at 94 cents and the latter at 74 cents.
Zacks Rank: T-Mobile currently has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Intellicheck, Inc. (IDN - Free Report) is scheduled to release first-quarter 2020 results on May 6. The company has an Earnings ESP of +66.67% and carries a Zacks Rank #2.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +23.41% and carries a Zacks Rank of 2. The company is set to report first-quarter 2020 results on May 6.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Shutterstock
Will Higher Revenues Buoy T-Mobile's (TMUS) Q1 Earnings?
T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report first-quarter 2020 results on May 6, after the closing bell. In the last reported quarter, the company delivered a positive earnings surprise of 4.8%. Notably, the company has a trailing four-quarter positive earnings surprise of 19.5%, on average.
The Bellevue, WA-based wireless carrier is expected to have recorded higher aggregate revenues on a year-over-year basis on inherent strength of its business model amid intense competition. The performance was supported by customer growth while T-Mobile continued to deploy a nationwide 5G network and worked to close its merger with Sprint.
Let’s discuss the factors that are likely to get reflected on the upcoming quarterly announcement.
Factors at Play
During the quarter under review, T-Mobile introduced GoTo, its new line of accessories with all the device essentials, giving customers price-right options for outfitting their phones and tablets. T-Mobile launched 5G in Lafayette, Charleston, Huntington, Jackson and Evansville. The company deployed an additional 600 MHz spectrum from multiple companies, doubling a total of 600 MHz LTE capacity across the nation. This is helping T-Mobile, Metro by T-Mobile and partner customers stay connected during the COVID-19 pandemic. Investments to build a nationwide 4G LTE network, which covers more than 327 million U.S. citizens is likely to have aided the company’s performance.
The company joined forces with YouTube to give its customers two months of free YouTube Premium through T-Mobile Tuesdays, which started on Mar 24. It launched T-Mobile Connect, its lowest-priced smartphone plan ever. Metro by T-Mobile has added lower-cost options to help ensure everyone has an affordable option to stay connected during these challenging times. The company is currently offering five 5G-capable smartphones, the OnePlus 7T Pro 5G McLaren, Samsung Galaxy Note10+ 5G, Samsung Galaxy S20 5G, Samsung Galaxy S20+ 5G and Samsung Galaxy S20 Ultra 5G. The company’s first-quarter performance is expected to have benefited from these developments.
The Zacks Consensus Estimate for revenues in the Service segment, which account for the lion’s share of total revenues, is pegged at $13,574 million. This indicates an increase of 64% from the year-ago quarter’s reported figure. Revenues in Equipment are estimated to be $4,979 million, which calls for a rise of 97.9% from the prior-year quarter’s reported figure.
For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $18,968 million that indicates a rise of 71.2% from the year-ago quarter’s reported figure. Adjusted earnings per share are pegged at 74 cents, which calls for a decline of 36.8% from the prior-year quarter’s recorded figure.
What Our Model Says
Our proven model doesn’t 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 odds of an earnings beat. But that’s not 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 +25.79% as the former is pegged at 94 cents and the latter at 74 cents.
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 #5 (Strong Sell).
Stocks to Consider
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter.
The Scotts Miracle-Gro Company (SMG - Free Report) is slated to release second-quarter fiscal 2020 results on May 6. It has an Earnings ESP of +1.49% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intellicheck, Inc. (IDN - Free Report) is scheduled to release first-quarter 2020 results on May 6. The company has an Earnings ESP of +66.67% and carries a Zacks Rank #2.
Shopify Inc. (SHOP - Free Report) has an Earnings ESP of +23.41% and carries a Zacks Rank of 2. The company is set to report first-quarter 2020 results on May 6.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>