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What’s the Outlook for T-Mobile in 2019?

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Analysts’ estimates

Analysts expect T-Mobile (TMUS) to report a ~5.6% rise in its consolidated revenue to $45.7 billion in 2019 compared to $43.3 billion in 2018. The company’s adjusted EPS are expected to be $3.85 in 2019 compared to $3.36 in 2018.

During T-Mobile’s fourth-quarter earnings conference call, the company’s management offered key insights into its outlook for 2019. T-Mobile expects its branded postpaid net customer additions for 2019 to be in the range of 2.6 million–3.6 million. Its management also expects its adjusted EBITDA for 2019 to be between $12.7 billion and $13.2 billion. The company expects its cash capex excluding capitalized interest for 2019 to be in the range of $5.4 billion–$5.7 billion.

In the fourth quarter, T-Mobile’s adjusted EPS rose ~23.0% YoY (year-over-year) to $0.75, beating analysts’ estimate of $0.69. T-Mobile’s total revenue rose ~6.4% YoY to $11.45 billion in the fourth quarter, higher than analysts’ consensus estimate of $11.39 billion.

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Peer comparison

AT&T’s (T) adjusted EPS rose ~10.3% YoY to reach $0.86 in the fourth quarter, while Verizon’s (VZ) adjusted EPS rose ~30.2% YoY to $1.12. Meanwhile, Sprint (S) reported adjusted EPS of -$0.03 in the third quarter of 2018, which ended on December 31.

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