T-Mobile US Inc
Why Verizon Needed to Diversify Its Wireless Business
Verizon’s wireless business accounts for more than 70% of its revenues. However, the business has recently seen falling revenue growth.
Sprint’s liquidity must be maintained to fund capital investments
Sprint is cutting down on operating costs to manage high capital expenditures. But marginal cash flows aren’t alleviating Sprint’s liquidity concerns.
What Are the Valuation Metrics for AT&T?
AT&T was trading at a current year’s PE multiple of ~12.8x on October 27, 2016. This figure is higher than Verizon Communications’ (VZ) comparable PE multiple of ~12.4x.
Why Sprint Raised Its Fiscal 2018 Outlook
In fiscal 2018, Sprint expects cash capital expenditure (excluding leased devices) of $5.0 billion–$5.5 billion as it ramps up its densification plan.
What Is Comcast’s Opinion about 5G?
In the telecom world, 5G (fifth-generation) is generating a lot of hype, as it could provide 10x–100x faster wireless speeds than 4G.
What We Heard from Dish Just before the Big Insider Buy
Weeks before it was revealed that Charlie Ergen made the largest insider buy of Dish Network (DISH) stock in years, we heard about the positive progress of the company’s online television service, Sling TV.
What T-Mobile’s Technical Indicators Hint At
Now let’s take a look at T-Mobile’s technical indicators and compare them to those of its peers in the telecommunications space.
Why T-Mobile’s Service Revenues Continue to Rise in 1Q17
T-Mobile (TMUS) once again led the industry in year-over-year service revenue percentage growth in 1Q17. This marks the 12th consecutive quarter that TMUS has led the industry in this metric.
What Do Wall Street Analysts Recommend for T-Mobile?
As of February 11, 2016, ~78.6% of analysts surveyed have given “buy” recommendations for T-Mobile, 17.9% have given “hold” recommendations, and ~3.6% have given “sell” recommendations.
What Drove Sprint’s Fiscal 3Q17 Earnings Growth?
Sprint’s (S) solid fiscal 3Q17 financial results suggested that the company is indeed holding its own in an intensely competitive wireless market.
Verizon’s Mean Target Price Has Risen
Verizon (VZ) stock offers a potential upside of ~9.5% going forward compared to its current market price of $54.03.
T-Mobile–Sprint Merger: Highlighting the 5G Opportunity
Verizon (VZ) expects to launch 5G fixed wireless broadband services in up to five US residential markets in 2H18.
What Sprint Foresees for Revenue Growth in Fiscal 1Q17
Wall Street expects Sprint’s (S) total revenues to rise ~3.0% YoY (year-over-year) to ~$8.25 billion in fiscal 1Q17 (ended June 2017).
What Are AT&T’s 5G Technology Plans?
AT&T (T) announced on January 2, 2018, that it expects to become the first US carrier company to roll out the real 5G network in some markets.
What Is Dish Network’s Wireless Spectrum Strategy ?
Dish Network (DISH) has filed an application with the FCC to participate as a potential spectrum bidder.
Why Do T-Mobile’s Service Revenues Keep Rising?
T-Mobile (TMUS) once again led the US wireless sector in YoY (year-over-year) service revenue percentage growth in 3Q17.
Sprint and Possible EBITDA Growth in Fiscal 4Q16
Sprint’s EBITDA margin could be impacted by elevated competitive intensity in the industry in fiscal 4Q16.
Why AT&T Is Eyeing Market Share in Mexico
Mexico has been a huge success story and should be a long-term value creator for AT&T (T).
T-Mobile’s EBITDA Grow despite Higher Expenses
T-Mobile’s (TMUS) adjusted EBITDA grew ~14.8% YoY (year-over-year) to $3.2 billion in the third quarter.
AT&T’s Net Additions of Postpaid Customers Declined in 2Q15
On the positive side, growth in AT&T’s net additions of connected devices continued to be solid during 2Q15. AT&T added ~1.4 million connected devices during the quarter.
What Drove Sprint’s Fiscal 1Q17 Earnings Growth
Sprint’s earnings in the last few quarters Sprint’s (S) strong fiscal 1Q17 (ended June 2017) results indicate that a turnaround is on track. Sprint has begun to recover from years of customer losses and continues to make progress on customer retention, acquisition, and expense optimization initiatives. In fiscal 1Q17, Sprint’s earnings grew significantly YoY (year-over-year). Its […]
AT&T’s customer base continues modest growth in 4Q14
AT&T’s connected devices increased 21% year-over-year during 4Q14. The company added 1.9 million customers and connections in the fourth quarter.
How T-Mobile Is Managing Its Service Revenue Growth
T-Mobile’s equipment revenues rose ~78.4% YoY to reach ~$2.7 billion in 4Q16, as the company promoted its equipment installment plans.
Key Technical Levels to Watch in AT&T Stock
Now let’s take a look at AT&T’s technical indicators and compare them to those of its competitors in the telecommunications space.
How Did Sprint Manage Costs in Fiscal 2017?
As Sprint is the fourth-largest mobile carrier company in the United States, it’s making significant efforts to tap more market share in the wireless space.
Users consume more data on Verizon and Sprint networks
People consume more data via Wi-Fi because it’s much cheaper than cellular data plans—6.8 GB using Android phones and 8.9 GB using Apple iPhones.
Why Does Verizon Still Have an Advantage in Network Performance?
Network performance is the key factor affecting customer retention. Verizon (VZ) continues to pursue its three-tier network performance strategy.
A Look at AT&T’s Current Valuations
On April 12, 2018, AT&T (T) stock closed at $35.16. It fell 13.3% in the trailing year.
How Was T-Mobile’s Prepaid Customer Growth in 4Q15?
During the quarter, T-Mobile’s prepaid subscribers increased robustly by ~8.1% YoY to reach ~17.6 million.
Verizon Registers Strong Revenue Growth in Q3 2018
Verizon’s wireless revenues rose ~6.5% YoY to reach $23.0 billion in the third quarter.
Could Sprint’s EBITDA Grow in Fiscal 2018’s Third Quarter?
In fiscal 2018’s second quarter, Sprint realized $100 million in YoY net cost reductions.
Can AT&T Continue Its Earnings Growth in 3Q17?
AT&T (T) will report its results for 3Q17 on October 24, 2017. Wall Street analysts are expecting the company’s earnings to increase in 3Q17.
Analyzing Sprint’s Distribution Strategy in Fiscal 2017
In its quarter ended March 31, 2017, Sprint (S) reported total revenues of ~$8.5 billion, compared to ~$8.1 billion in March 2016.
AT&T’s Big Investment Plans for Mexico: 4G LTE
A few days back, AT&T announced that it plans to invest $3 billion to extend its 4G LTE network across Mexico.
Verizon’s Stock Performance and Moving Averages
On February 22, 2018, Verizon had a moving average convergence divergence (or MACD) of -0.69.
Concerns Surrounding the T-Mobile-Sprint Merger
T-Mobile believes that integrating T-Mobile and Sprint networks would take two to three years and would look similar to MetroPCS’s integration with T-Mobile.
AT&T: What the Technical Indicators Suggest
On April 4, 2018, AT&T was trading 2.1% below its 100-day moving average.
Analyzing Trends in Sprint’s Postpaid Phone Churn Rate
An increase in churn rate is negative for telecom companies because they have to deal with additional acquisition costs associated with customers.
Street Talk on AT&T: Analyst Recommendations after the 3Q17 Results
As of November 8, 2017, of the 30 analysts from various brokerage firms tracking AT&T (T) stock, 20 recommend a “hold,” while nine recommend a “buy.”
Verizon Best of Top 4 US Wireless Carriers in Network Performance
Verizon commanded the best customer retention rate among the top four carriers in the US in 2Q15.
Why T-Mobile Expects Stable Postpaid Growth in 2018
Under its existing revenue accounting standards, T-Mobile (TMUS) continues to expect its postpaid phone ARPU in 2018 to be stable compared to 2017.
Sprint Boosted Adjusted EBITDA with Cost Savings
Sprint (S) has been making serious efforts to cut its costs to revive its profits in the wireless space and has been eliminating more than $1 billion in costs in each of the past four years.
What Are T-Mobile’s Capex Plans for 2017?
T-Mobile (TMUS) is continually investing in capex (capital expenditure) to improve its network. By deploying more low-band spectrum, it continues to enhance its network.
Why the North American Market Is Exciting for Ericsson
Ericsson (ERIC) has set a goal to deliver a gross profit margin of 37%–39% by 2020.
Why Sprint’s Prepaid Net Additions Are Still Pressured
While Sprint (S) appears to be making progress on the postpaid side, it’s losing more subscribers than the company is gaining on the postpaid side.
Sprint’s Year-to-Date Stock Performance in 2018
On August 17, Sprint had a 14-day RSI reading of 67. T-Mobile, AT&T, and Verizon had 14-day RSI readings of 67, 62, and 73, respectively.
AT&T’s Value Proposition in the US Telecom Space
As of April 5, 2016, globally, AT&T was the largest telecom player by market capitalization. China Mobile (CHL) followed.
Understanding Sprint’s Capex Guidance
Sprint (S) spent $1.13 billion on cash capital expenditures, excluding leased devices, in the first quarter of fiscal 2018.
Why Is AT&T Offering DirecTV as an Over-the-Top Service?
AT&T is planning to enter the IP-based video delivery market by offering DirecTV as an OTT (over-the-top) service in the fourth quarter of 2016.
Is Sprint’s Prepaid Segment Turning a Corner?
In fiscal 4Q16, Sprint added 180,000 prepaid subscribers as compared to 264,000 losses in fiscal 4Q15.
Verizon Plans to Cut almost 7% of Its Workforce
Last week, Verizon (VZ) reported that ~6.8% of its total workforce had agreed to leave the company as part of its buyout program.
Verizon Edge penetration rate doubles in 4Q14
According to Verizon, its Edge penetration rate increased significantly during 4Q14. Higher Edge penetration should positively impact its 4Q14 earnings.
AT&T Keeps 5G Promise
AT&T’s (T) mobile 5G service went live in the United States on December 21 in time for Christmas.
Inside Sprint’s Customer Base
The performance of a mobile carrier’s network determines its customer base. Sprint (S) has been focusing on upgrading its network to keep its customers.
A Price Target Update for Sprint
Of the 22 analysts covering Sprint stock on December 27, only 14% rated it as a “buy,” while 23% rated it as a “sell,” and 63% rated it as a “hold.”
AT&T’s Valuation in January 2018
AT&T’s scale As of January 9, 2018, AT&T’s (T) market capitalization was ~$230.2 billion, making it the largest US wireless service provider in terms of market capitalization. In comparison, Verizon’s (VZ) market capitalization was ~$210.5 billion, T-Mobile’s (TMUS) was ~$54.6 billion, and Sprint’s (S) was ~$22.8 billion. Bollinger Band AT&T stock closed at $37.49 on January 9, near […]
Reading Sprint’s Moving Averages and Relative Strength
Now let’s take a look at Sprint’s (S) technical indicators and compare them to those of its competitors in the US telecommunications industry.
What We Learned from Sprint’s Brief Unlimited Plan Offer
For a period of one week in June, Sprint (S) offered an aggressively priced unlimited wireless plan.
How AT&T Intends to Fund the Mexico Spectrum Purchase
AT&T placed a $76.0 million bid in the Mexico spectrum auction. The spectrum AT&T is buying in Mexico is suited for 5G mobile networks.
AT&T’s 5G Segment: Progess Continues
AT&T’s (T) progress in the 5G space continues. AT&T is enthusiastic about the future of 5G technology, which should improve data speeds.
Inside AT&T’s Expectations for Its New Streaming Service
At a recent analyst briefing, AT&T provided more details about its upcoming streaming service.
Street Talk on T-Mobile: Analyst Recommendations after the 3Q17 Results
As of November 13, of the 30 analysts actively tracking T-Mobile stock, 23 recommend a “buy,” while one recommends a “sell,” and six recommend a “hold.”
What’s Driving Capex at Verizon?
Verizon has been spending big on capex to improve its network and acquire additional spectrum for future use.
Verizon’s 3Q16 Earnings Exceed Expectations as Sales Disappoint
On October 20, Verizon (VZ) posted EPS (earnings per share) for 3Q16 that handily beat the consensus estimate, but sales were disappointing.
Why AT&T Believes Mexico Is a Good Growth Opportunity
In Mexico, AT&T added 633,000 wireless net subscribers in 1Q17 compared to 529,000 in 1Q16. In Latin America, DIRECTV added 91,000 video subscribers in 1Q17.
Did Dan Loeb’s Third Point buy T-Mobile stake ahead of a merger?
Third Point said in its 4Q investor letter that it had an opportunity to establish a position in T-Mobile (TMUS) in November when the company conducted a secondary offering at $25.
Verizon: Analyst Recommendations and Target Price
Of the 33 analysts tracking Verizon (VZ) stock, 24.0% of them have recommended a “buy” for the stock.
Technical Indicators for AT&T: A Peer Comparison
On December 29, 2016, AT&T (T) was trading 6.6% above its 100-day moving average of $40. In comparison, T-Mobile (TMUS) was trading 16.1% above its 100-day moving average
AT&T or Verizon: Which Is Expected to Report Faster EPS Growth?
Verizon (VZ) reported adjusted EPS of $4.71 in 2018 compared to $3.74 in 2017, a ~25.9% YoY (year-over-year) rise.
Must-know: Sprint is resorting to price cuts
Sprint’s price cuts are clearly aimed at gaining net subscribers at the expense of its competitors. Sprint is the only major US telecom company that kept losing subscribers.
Putting T-Mobile’s Television Move in Perspective
T-Mobile’s revenues grew about 8.0% YoY (year-over-year) to over $10.0 billion in 3Q17, outpacing Verizon’s 2.5% revenue growth.
AT&T’s Latest Valuation Metrics
AT&T’s scale On December 26, 2017, AT&T’s (T) market capitalization was ~$239.8 billion, making it the largest US wireless player in terms of market capitalization. In comparison, Verizon’s (VZ) market capitalization was ~$217.1 billion, T-Mobile’s (TMUS) was ~$53.1 billion, and Sprint’s (S) was ~$23.2 billion. Bollinger Band On December 26, AT&T stock closed at $39.06, near its […]
How Verizon’s Media Business Performed in 1Q18
In 1Q18, Verizon’s (VZ) digital media and advertising subsidiary, Oath, posted gross revenues of $1.9 billion—excluding the impact of the revenue recognition standard.
Lee Cooperman’s Omega Advisors opens a new position in T-Mobile
Cooperman seems to be following the trend of other other hedge funds such as Third Point and Paulson to capitalize on consolidation in the telecom space.
Telcos lure customers with attractive family plans
Other telecom companies have also started luring customers with attractive family plans—AT&T, Sprint, and T-Mobile among them.
Investors should be aware of regulations in the telecom industry
In the US and around the world, the telecom industry is regulated because market forces can’t maintain competition within the highly capital-intensive industry.
Key customers in the telecom industry
Post-paid users pay telecom companies periodically. The users pay after they received the service. They typically subscribe to plans for a fixed term.
Must-know: Why AT&T’s churn rate is the best in the industry
Lower churn rates help companies save cost that they would otherwise incur acquiring new customers. So it’s an important parameter in the telecom industry.
Why T-Mobile Plans to Launch a Video Streaming Service
T-Mobile’s (TMUS) current marketing drive is known as its “Un-Carrier” initiatives, which are driving subscriber additions for the company.
Did Verizon Beat Earnings Estimates in 1Q18?
Verizon (VZ) reported its 1Q18 results on April 24. VZ’s adjusted earnings per share rose ~23.2% year-over-year to reach $1.17 in 1Q18.
Inside Sprint’s Plan to Offer 5G Mobile Services
The race for 5G (fifth-generation) network implementation is heating up, and Sprint plans to launch its 5G service in early 2019.
Why we’re seeing a telecom shift from subsidy to installment plans
Compared to the traditional subsidy model, the Next program provides more flexibility to customers who like to frequently upgrade their devices.
Why Is Sprint Offering a Discount to Competitors’ Customers?
In this part, we’ll look at one of the reasons behind Sprint’s 50% discount for competitors’ customers.
Valuation metrics that investors can use in the telecom industry
Investors often use different metrics to determine telecom companies’ relative valuation. Telecom is a capital-intensive industry with high fixed costs.
What’s T-Mobile’s Distribution Strategy for the Rest of 2018?
T-Mobile (TMUS), the fastest-growing and third-largest wireless service provider in the US, is expanding its distribution footprint as a means to drive growth in the untapped US markets.
Most Analysts Recommend a ‘Hold’ for Sprint in June
The Wall Street analyst consensus 12-month target price for Sprint is $5.19, which suggests a potential return of approximately 2% from the closing price of $5.31 as of June 12.
What Investors Should Know about Sprint’s 2018 Capex Budget
Sprint expects cash capital expenditures for fiscal 2018 to be in the $5.0 billion–$6.0 billion range.
Understanding T-Mobile’s Technical Indicators ahead of Its 1Q17 Results
On April 19, T-Mobile was trading 6.8% above its 100-day moving average, while Verizon was trading ~2.1% below its 100-day, and AT&T was trading 1.8% below its 100-day.
No ‘Buy’ Ratings for Frontier despite Improved Losses in Q4 2018
Frontier Communications (FTR) marginally beat revenue estimates and reported wider-than-expected losses per share in the fourth quarter of 2018.
3 Things You Need to Know before Buying T-Mobile Stock
In recent months, T-Mobile stock soared and investors made good money. However, there’s a chance for other investors to make money with the stock.
What’s driving Verizon’s increase in average revenue per account?
Average revenue per account (or ARPA) is an important metric for Verizon. It gives an idea of how well it’s able to monetize its users’ accounts. Verizon increases ARPA consistently.
Making Sense of the Verizon–Ericsson SD WAN Deal
Verizon’s Enterprise Solutions revenues dipped to less than $2.5 billion in 1Q17 from more than $2.5 billion a year earlier.
What Are T-Mobile’s Expansion Opportunities?
T-Mobile (TMUS) is continuing to expand its distribution footprint into markets where it has not historically had a presence.
How Is Sprint’s Offer for Competitors’ Customers Faring?
Sprint’s offer to the customers of other wireless carriers is for monthly charges associated with the service plan as well as the access line.
Verizon’s service revenue growth is slowing down
Verizon’s service revenue growth rate declined consistently over the past few quarters. Verizon’s year-over-year (or YoY) growth rate declined from 8.4% in 3Q13 to 4.8% in 3Q14.
Can Frontier Communications Keep Lowering Its Churn Rate?
Frontier Communications has been trying to retain its subscribers and maintain a lower churn rate amid a highly competitive telecom sector.
Why Verizon’s Wireless Service Revenues Declined in 1Q18
In 1Q18, Verizon reported wireless service revenues of $15.4 billion, an ~2.4% reduction year-over-year.
How Verizon Is Allocating Its Capex
Verizon (VZ) has been spending a lot on capex to improve its network and acquire additional spectrum for future use.
Must-Know Potential Synergies from a T-Mobile–Sprint Merger
The combined company expects more than $6.0 billion in annual run-rate synergies.
How Much Verizon Plans to Spend in 2018
In 1Q18, Verizon’s capex rose YoY (year-over-year) to $4.6 billion from $3.1 billion.