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T-Mobile’s Revenue Exceeds Wall Street’s Expectations in 2Q15



T-Mobile’s revenue in 2Q15

In this series, we’ll look at the key operating and financial performance of T-Mobile (TMUS) in 2Q15. T-Mobile’s revenue beat Wall Street analyst expectations again this quarter. The firm’s revenue grew robustly by ~13.8% YoY (year-over-year) to ~$8.2 billion, beating the consensus estimate by ~2.7%.

As we can see in the above chart, T-Mobile’s revenue beat the consensus estimate for the third consecutive quarter in 2Q15. In the previous quarter, T-Mobile’s revenue marginally beat out analyst consensus by ~0.8%. The big surprise to the upside came in 4Q14, when the company beat Wall Street’s estimates by ~3.6%. In 3Q14, T-Mobile reported lower-than-expected revenue.

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About T-Mobile

T-Mobile is the third-largest US wireless carrier based on overall subscribers. The two largest wireless carriers are Verizon (VZ) and AT&T (T). And Sprint (S) is the smallest among the top four US wireless carriers.

In terms of market capitalization, T-Mobile is the third-largest wireless telecom company in the US. It had a market capitalization of ~$32.89 billion on August 7, 2015. Verizon is the largest with a market capitalization of ~$188.49 billion. AT&T is the second-largest. It had a market capitalization of ~$177.65 billion on the same date. Again, Sprint is the smallest of the top four US wireless players in terms of market capitalization.

You may get exposure to T-Mobile and diversify risk by investing in the iShares Russell 3000 ETF (IWV) or the iShares Russell 1000 Value ETF (IWD). IWV invested ~0.05% of its portfolio in the wireless carrier as of July 31, 2015. T-Mobile accounted for ~0.1% of IWD’s holdings on the same date.


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