T-Mobile US, Inc.
) - the fourth largest telecom operator in the U.S. - is set to
release its second-quarter 2013 results before the opening bell
on Aug 8, 2013.
In the last quarter, the company delivered a 45.45% negative
earnings surprise. Let's see how things are shaping up for this
Factors to be Considered This Quarter
Continuous launch of attractive service plans coupled with
inclusion of iPhones in its smartphone portfolio will act as
catalysts for T-Mobile US, going forward. Moreover, the company's
recent merger with MetroPCS Communications, Inc. has also solved
its longstanding spectrum shortage crisis, thereby helping
T-Mobile US to deploy 4GLTE service across 100 markets.
However, intense competition from other carriers coupled with
huge investment for the deployment of 4GLTE network may continue
to erode margin and cash position of the company.
Our proven model does not conclusively show that T-Mobile US is
likely to beat the Zacks Consensus Estimate this quarter. This is
because a stock needs to have both a positive Expected Surprise
Prediction (ESP) (Read: Zacks Earnings ESP: A Better Method) and
a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to
happen. Unfortunately, this is not the case here as elaborated
Negative Zacks ESP:
This is because the Most Accurate estimate is 3 cents while the
Zacks Consensus Estimate is higher at 7 cents. This leads to an
ESP of -57.14% for T-Mobile US.
Zacks Rank #3 (Hold):
T-Mobile US Zacks Rank #3, decreases the predictive power of ESP.
We caution investors against the stock going into the earnings
announcement, as a Zacks Earnings ESP of -57.14% combined with a
Zacks Rank #3 lowers the possibility of an earnings surprise.
Other Stocks to Consider
Here are some other companies to consider as our model shows
they have the right combination of elements to post an earnings
beat this quarter.
Leap Wireless International Inc.
) has Earnings ESP of +2.59% and carries a Zacks Rank #3 (Hold).
COMCAST CORP A (CMCSA): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
T-MOBILE US INC (TMUS): Free Stock Analysis
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) has Earnings ESP of +1.67% and carries a Zacks Rank #2 (Buy).
) has Earnings ESP of +1.47% and carries a Zacks Rank #3