T-Mobile Q2 revenue slightly misses analyst estimates

T-Mobile US, Inc.

T-Mobile US, Inc.

TMUS

0.00


Overview

  • US wireless carrier's Q2 revenue slightly missed analyst expectations, service revenue grew 9% yr/yr

  • Diluted EPS for Q2 rose 5% yr/yr to $2.99

  • Company returned $3.3 bln to shareholders via buybacks and dividends in Q2


Outlook

  • T-Mobile raises full-year net cash from operating activities guidance to $28.4-$28.8 bln

  • Company lifts full-year Adjusted Free Cash Flow guidance,including net payments for UScellular merger-related costs, to $18.4-$18.8 bln

  • T-Mobile expects 2026 postpaid net account additions of 950,000 to 1.05 mln


Result Drivers

  • POSTPAID ACCOUNT GROWTH - Co said strong postpaid account and ARPA growth contributed to service revenue gains

  • NETWORK RECOGNITION - Co cited multiple independent awards for network quality and customer experience as drivers of customer retention and differentiation

  • CUSTOMER SATISFACTION - Record-high wireless NPS score cited as evidence of customer satisfaction and deepening relationships


Company press release: ID:nBw1CgTSDa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Slight Miss*

$22.79 bln

$22.94 bln (19 Analysts)

Q2 EPS

$2.99

Q2 Adjusted Free Cash Flow

$4.80 bln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 26 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the wireless telecommunications services peer group is "buy"

  • Wall Street's median 12-month price target for T-Mobile US Inc is $254.00, about 33% above its July 22 closing price of $190.94

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago


Reuters Recommended Reads

  • July 22 - AT&T tops targets for new wireless subscribers as bundle offers spur demand

  • July 22 - Rogers misses quarterly wireless subscriber estimates, shares fall

  • July 21 - Mexico's America Movil posts 9% rise in Q2 profit


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


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