Valued at a market cap of $254.3 billion, Bellevue, Washington-based T-Mobile US, Inc. (TMUS) is a leading national wireless service provider offering mobile voice, messaging, and data services under the T-Mobile and Metro by T-Mobile brands. It extensively deploys 5G and 4G LTE networks, providing devices, accessories, and high-speed internet services across the United States, Puerto Rico, and the U.S. Virgin Islands. TMUS is expected to release its fiscal Q4 earnings results before the market opens on Wednesday, Jan. 29.
Ahead of this event, analysts expect the wireless carrier to report a profit of $2.17 per share, up nearly 30% from $1.67 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. In the most recent quarter, TMUS exceeded the consensus EPS estimate by 10.1%.
For fiscal 2024, analysts expect TMUS to report EPS of $9.31, up 34.3% from $6.93 in fiscal 2023.
T-Mobile has surged 35.2% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 26.3% gain. However, the stock has slightly lagged behind the Communication Services Select Sector SPDR ETF Fund's (XLC) nearly 36% increase over the same period.
Shares of T-Mobile US climbed 5.7% following its Q3 earnings release on Oct. 23 due to impressive financial performance and subscriber growth. It reported a better-than-expected EPS of $2.61, a 43% year-over-year increase, and a net income of $3.1 billion, surpassing revenue expectations of $20.2 billion. T-Mobile also outperformed subscriber growth estimates, adding 865,000 postpaid phone customers, well above the anticipated 727,500 additions. Additionally, the company raised its 2024 postpaid net customer additions guidance to 5.6 million - 5.8 million, further boosting investor confidence in its growth prospects.
Overall, analysts' consensus view on T-Mobile stock is moderately optimistic, with a "Moderate Buy" rating. Out of 27 analysts covering the stock, 17 recommend a "Strong Buy," three suggest a "Moderate Buy," six propose a "Hold," and the remaining one gives a "Strong Sell" rating. This configuration is less bullish than three months ago when the stock had 19 “Strong Buy” ratings.
As of writing, TMUS is trading below the average analyst price target of $249.86.
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