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T-Mobile (TMUS) to Report Q3 Earnings: Is a Beat in Store?

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T-Mobile US, Inc. TMUS is scheduled to report third-quarter 2019 results on Oct 28, after the closing bell. In the last reported quarter, the company delivered positive earnings surprise of 30.3%. Markedly, T-Mobile topped the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average beat being 17.9%.

The national wireless carrier is likely to report higher year-over-year revenues on the back of solid customer growth and low postpaid phone churn. Whether this can result into an earnings beat remains to be seen.

Factors Likely to Influence Performance

During the third quarter, investments in new geographies and customer experience are likely to have benefited T-Mobile. It witnessed strong response from new customer segments and rate plans, including T-Mobile for Business.

The company stepped into the asset tracking business in the quarter under review. T-Mobile for Business and Roambee joined forces to offer a comprehensive asset tracking solution that works exclusively on T-Mobile’s Narrowband Internet of Things network in the United States. Roambee is a provider of real-time visibility into goods and assets across a company’s supply chain worldwide. T-Mobile is providing its first asset tracking solution — Roambee BeeAware. This is likely to have aided the company’s performance.

The Zacks Consensus Estimate for revenues from the Service segment, which accounts for the lion’s share of total revenues, is pegged at $8,563 million, indicating an increase from $8,066 million reported in the prior-year quarter. Revenues from Equipment are estimated to be $2,410 million. The same was $2,391 million in the year-ago quarter.

Total revenues for the September quarter are estimated to rise to $11,308 million. Revenues of $10,839 million were reported in the prior-year quarter. Consequently, adjusted earnings per share are pegged at 97 cents. The company registered earnings of 93 cents a year ago.

What Our Model Says

Our proven model predicts an earnings beat for T-Mobile this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: T-Mobile’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.55% as the former is pegged at 98 cents and the latter at 97 cents.

Zacks Rank: T-Mobile currently carries a Zacks Rank #2.

T-Mobile US, Inc. Price and EPS Surprise

T-Mobile US, Inc. Price and EPS Surprise
T-Mobile US, Inc. Price and EPS Surprise

T-Mobile US, Inc. price-eps-surprise | T-Mobile US, Inc. Quote

Other Stocks to Consider

Here are some other companies that you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

The Allstate Corporation ALL is slated to release quarterly results on Oct 29. It has an Earnings ESP of +4.20% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Incyte Corporation INCY is scheduled to release results on Oct 29. The company has an Earnings ESP of +1.15% and carries a Zacks Rank #1.

Columbia Sportswear Company COLM has an Earnings ESP of +1.57% and sports a Zacks Rank of 1. The company is likely to report results on Oct 30.

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