T-Mobile Talks Shop at the Morgan Stanley TMT Conference

1 2 3 4 5 6 7 8 9 10 11 12
T-Mobile Talks Shop at the Morgan Stanley TMT Conference PART 1 OF 12

A Look at T-Mobile’s 2017 Outlook

T-Mobile’s 2017 outlook

T-Mobile (TMUS) keeps surprising the wireless telecommunications industry with its unique service plans. Instead of initiating a price war among its peers, T-Mobile has surprised its customers with additional benefits.

Taking cues from T-Mobile’s success strategy, Verizon (VZ), AT&T (T), and Sprint (S) will likely either follow suit or seek diversification for growth opportunities.

A Look at T-Mobile’s 2017 Outlook

Interested in S? Don't miss the next report.

Receive e-mail alerts for new research on S

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

During the Morgan Stanley Technology, Media and Telecom Conference on February 27, 2017, Braxton Carter, T-Mobile’s chief financial officer, talked about guidance on the company’s expected performance during 2017. Carter said that T-Mobile could continue to gain postpaid subscribers as it continues to improve its value proposition with its Un-Carrier initiative, which provides simple pricing plans to its subscribers.

Wall Street expects T-Mobile’s earnings to rise in 2017. Analysts expect its EPS (earnings per share) to rise ~7.7% YoY (year-over-year) to reach ~$1.82 in 2017, compared to $1.69 in 2016.

Key points from T-Mobile’s guidance

T-Mobile expects branded postpaid net customer additions for 2017 in the range of 2.4 million–3.4 million. T-Mobile’s management also expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for 2017 to be between $10.4 billion and $10.8 billion. This target excludes spectrum gains and includes expected leasing revenue of $0.8 billion–$0.9 billion. The impact from Data Stash is expected to be immaterial to adjusted EBITDA.

An accounting change associated with imputed interest with EIP (Equipment Installment Plan) receivables is also expected to impact T-Mobile’s results by $0.2 billion–$0.3 billion. The company expects its cash capex for 2017 to be in the range of $4.8 billion–$5.1 billion excluding capitalized interest.


Please select a profession that best describes you: