T-Mobile US Inc. ( TMUS ) is a leading telecom operator in the U.S. providing postpaid and prepaid wireless voice, messaging and data services to individuals and business enterprises under the T-Mobile, MetroPCS, and GoSmart brands.
T-Mobile US announced that it witnessed a healthy subscriber gain in the fourth quarter of 2014. Nevertheless, 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. In an effort to expand its customer base, the company is spending heavily on promotion and is also offering lucrative discounts. These strategies are likely to impact the company's EBITDA margin.
T-Mobile US currently carries a Zacks Rank #3 (Hold). The company has generated a negative average earnings surprise of a substantial 82.78% in the previous four quarters. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: T-Mobile US outpaced 4Q earnings estimate. Our consensus earnings estimate called for an EPS of 9 cents and the company reported EPS was 12 cents. Investors should note that these figures take out stock option expenses.
Revenue: T-Mobile US reported total revenue of $8,154 million surpassing our estimate by a significant $246 million.
Key States to Note: In the reported quarter, T-Mobile US added 2.1 million net customers including 1.3 million branded postpaid net customer. It also added 266,000 branded prepaid net customers in the same quarter. At year end, the company had more than 55 million customers. Branded postpaid Average Billings Per User (ABPU) was $61.80, up 5.1% year over year. Branded prepaid Average Revenue Per User (ARPU) increased by 4.7% year-over-year to $37.51.
Check back later for our full write up on this T-Mobile US earnings report later!