T-Mobile Revenue: Robust Growth Anticipated in 2Q15
T-Mobile Earnings Preview: What to Expect in 2Q15
Expectations for T-Mobile 2Q15 revenue
In the previous part of this series, we learned that Wall Street expects robust growth in T-Mobile’s (TMUS) 2Q15 EBITDA (earnings before interest, taxes, depreciation, and amortization). Now we’ll look at T-Mobile’s key financial and operating metrics in order to understand their impact on the company’s 2Q15 results.
Wall Street expects robust year-over-year growth in T-Mobile’s revenue in 2Q15. Based on Wall Street consensus as of July 17, 2015, T-Mobile’s 2Q15 revenue is expected to increase ~10.9% year-over-year to ~$8.0 billion.
As you can see in the above graph, T-Mobile has mostly beaten Wall Street revenue estimates in the last four quarters. In 1Q15, T-Mobile’s revenue was ~0.8% higher than Wall Street’s projections. In 4Q14, the carrier beat Wall Street’s projections by a significant ~3.6%. But in 2Q14, Wall Street’s revenue consensus estimate was ~2.1% lower than the reported T-Mobile revenue.
However, the wireless carrier underperformed according to Wall Street expectations for its revenue in 3Q14.
T-Mobile revenue growth: Highest among the top four
T-Mobile remained the fastest growing US wireless carrier in 1Q15. Its revenue increased ~13.1% year-over-year to reach ~$7.8 billion. Verizon (VZ) also reported solid year-over-year revenue growth of ~6.9%. AT&T (T) witnessed muted year-over-year wireless revenue growth, and Sprint’s (S) revenue fell.
You may take diversified exposure to T-Mobile by investing in the iShares Russell 3000 ETF (IWV) or the iShares Russell 1000 ETF (IWB). Both ETFs held ~0.05% each in T-Mobile on June 30, 2015.
Browse this series on Market Realist:
