What Do Analysts Expect from T-Mobile’s Q2 2018 Earnings?



T-Mobile’s earnings in the second quarter

T-Mobile (TMUS) is expected to report its second-quarter results on July 17. In this series, we’ll take a look at the expectations for the company’s performance during the quarter. Wall Street analysts expect the company’s earnings to rise in the quarter. They expect its EPS to reach $0.88 in the quarter compared to $0.67 in the second quarter of 2017.

In the first quarter, T-Mobile’s EPS fell ~2.5% YoY (year-over-year) to $0.78. Excluding after-tax spectrum gains and tax benefits related to a valuation allowance release in the first quarter of 2017, its earnings rose $0.30 YoY. The company’s earnings were ~9.9% higher than what Wall Street analysts had anticipated in the quarter.

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During the first quarter, T-Mobile’s operations in Puerto Rico continued to experience losses associated with the hurricanes mainly due to incremental costs related to maintaining its services in the region. Specifically, T-Mobile experienced a $0.03 per share headwind to its diluted EPS in the quarter.

T-Mobile’s consensus versus actual earnings

Now let’s take a look at T-Mobile’s earnings versus Wall Street analysts’ consensus earnings estimates over the last few quarters. As we can see in the chart above, analysts’ estimates for the company’s earnings have been conservative over the last few quarters.

In comparison, Verizon’s (VZ) adjusted EPS rose ~23.2% YoY to reach $1.17 in the first quarter. AT&T’s (T) adjusted EPS rose ~14.9% YoY to reach $0.85 in the quarter. Meanwhile, Sprint’s (S) EPS improved from -$0.07 in the fiscal fourth quarter of 2016 to $0.02 in the fiscal four quarter of 2017, which ended in March.

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In the next article, we’ll take a look at how much total revenue growth we can expect from T-Mobile in the second quarter.


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