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What T-Mobile Expects for 2017

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T-Mobile’s outlook for 2017

T-Mobile (TMUS) continues to provoke the wireless telecom sector, offering innovative service plans and customer benefits every few months rather than just competing on price. The success of these service plan innovations has been evident as major rivals AT&T (T), Verizon (VZ), and Sprint (S) seek to copy them or diversify into other businesses.

Wall Street analysts anticipate the company’s earnings to rise in 2017. Analysts expect T-Mobile’s EPS (earnings per share) to rise ~35.5% YoY (year-over-year) to ~$2.29 in 2017, compared with $1.69 in 2016.

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Key points from T-Mobile’s guidance

During T-Mobile’s 2Q17 earnings conference call, the company updated its guidance for 2017. It increased its branded postpaid net subscriber additions guidance to 3.0 million–3.6 million from 2.8 million–3.5 million. The company also increased its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) guidance to $10.5 billion–$10.9 billion, up from the previous guidance of $10.4 billion–$10.8 billion, which includes expected leasing revenue of $0.85 billion–$0.95 billion. The company maintained its cash capex guidance for fiscal 2017 of $4.8 billion–$5.1 billion, excluding capitalized interest. In the next part, we’ll look at T-Mobile’s earnings growth in 2Q17.

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