T-Mobile US Inc.TMUS is a leading telecom operator in the U.S. providing high-end wireless and wireline services to individuals, business enterprises and government agencies.
The U.S. telecom industry is facing severe competitive pressure at present. Aggressive pricing competition and higher promotional activities are likely to hurt the company's financial results going forward. Nevertheless, we are impressed with T-Mobile US' innovative network expansion methodologies which have helped drive substantial consumer growth. Another noteworthy development is the participation of T-Mobile US in the FCC conducted Incentive Auction for 600 MHz low-band wireless spectrums.
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 . The company has generated a positive average earnings surprise of a substantial 107.70% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: The Company beats fourth quarter earnings. Our consensus called for EPS of 29 cents while the company reported EPS of 45 cents.
Revenue: T-Mobile US reported total revenue of $10,175 million surpassing the Zacks Consensus Estimate of $9,838 million.
Key States to Note: In the reported quarter, T-Mobile US added 0.933 million postpaid connections. Retail postpaid churn decreased to 1.28% from 1.46% in the prior-year quarter. At the end of 2016, T-Mobile US had 34.427 million postpaid connections, up 8.6% year over year. Branded postpaid phone Average Revenue per User (ARPU) of $48.37 was up 0.7% year over year.
Stock Price: At the time of writing, the stock price of T-Mobile US was down nearly 1.64% in the pre-market trade on Nasdaq. Clearly the initial reaction to the release is negative despite strong Q4 2016 financial results. We believe weak guidance for 2017 branded postpaid customer growth and Verizon's recent decision to bring back unlimited data plan which is likely to put intensive pressure on T-Mobile US are the primary reasons for this negative market sentiment.
T-Mobile US, Inc. Price and EPS Surprise
Check back later for our full write up on this T-Mobile US earnings report later!
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