T-Mobile US (NASDAQ:TMUS) Issues Earnings Results, Beats Expectations By $0.40 EPS

T-Mobile US (NASDAQ:TMUS) issued its quarterly earnings results on Thursday. The Wireless communications provider reported $2.99 earnings per share for the quarter, beating analysts’ consensus estimates of $2.59 by $0.40, FiscalAI reports. The firm had revenue of $22.79 billion for the quarter, compared to analyst estimates of $22.95 billion. T-Mobile US had a net margin of 11.65% and a return on equity of 19.47%. T-Mobile US’s quarterly revenue was up 7.9% compared to the same quarter last year. During the same period last year, the company posted $2.84 EPS.

Here are the key takeaways from T-Mobile US’s conference call:

• T-Mobile said Q2 was another strong quarter, with record-high NPS of 46, 277,000 postpaid net account additions, 2% postpaid ARPA growth, and industry-leading free cash flow margin of 25%.
• Management raised full-year adjusted free cash flow guidance to $18.4 billion-$18.8 billion, while keeping 2026 CapEx guidance unchanged at about $10 billion.
• The company said it expects Q3 postpaid net additions to slow temporarily to about 250,000 because of rate plan modernization, but still reaffirmed full-year postpaid account additions of 950,000-1,050,000.
• T-Mobile highlighted continued momentum in 5G broadband/FWA, saying it remains the fastest-growing ISP in the country and that its fallow-capacity model still leaves room for expansion, including toward a long-term target of 15 million customers.
• Management reiterated plans to maintain disciplined capital allocation, with share repurchases continuing but balanced against upcoming spectrum opportunities in 2027 and 2028, including C-band 2.0 and 2.7 GHz.

T-Mobile US Trading Down 5.6%

T-Mobile US stock traded down $10.76 during trading hours on Thursday, hitting $180.18. The stock had a trading volume of 2,079,369 shares, compared to its average volume of 5,830,942. T-Mobile US has a one year low of $165.66 and a one year high of $261.56. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.58. The stock has a market cap of $194.99 billion, a price-to-earnings ratio of 19.24, a P/E/G ratio of 1.13 and a beta of 0.33. The business’s 50 day simple moving average is $184.99 and its 200-day simple moving average is $195.97.

T-Mobile US Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 28th will be issued a dividend of $1.02 per share. The ex-dividend date is Friday, August 28th. This represents a $4.08 annualized dividend and a dividend yield of 2.3%. T-Mobile US’s dividend payout ratio is 43.40%.

Insider Buying and Selling at T-Mobile US

In related news, COO Jon Freier sold 4,799 shares of the business’s stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $190.00, for a total value of $911,810.00. Following the transaction, the chief operating officer directly owned 217,168 shares of the company’s stock, valued at approximately $41,261,920. The trade was a 2.16% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Andre Almeida bought 5,097 shares of the stock in a transaction on Friday, May 1st. The stock was purchased at an average price of $196.18 per share, for a total transaction of $999,929.46. Following the completion of the purchase, the insider owned 44,850 shares of the company’s stock, valued at approximately $8,798,673. This trade represents a 12.82% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.32% of the company’s stock.

Institutional Trading of T-Mobile US

A number of hedge funds have recently made changes to their positions in TMUS. Prosperity Bancshares Inc purchased a new position in shares of T-Mobile US during the fourth quarter valued at approximately $147,000. Kemnay Advisory Services Inc. purchased a new position in shares of T-Mobile US during the 4th quarter valued at about $105,000. Transamerica Financial Advisors LLC boosted its holdings in shares of T-Mobile US by 102.9% during the 4th quarter. Transamerica Financial Advisors LLC now owns 349 shares of the Wireless communications provider’s stock valued at $71,000 after purchasing an additional 177 shares during the last quarter. Colonial Trust Co SC boosted its position in shares of T-Mobile US by 17.7% during the fourth quarter. Colonial Trust Co SC now owns 710 shares of the Wireless communications provider’s stock valued at $144,000 after buying an additional 107 shares during the period. Finally, Meeder Asset Management Inc. grew its stake in T-Mobile US by 16.2% in the fourth quarter. Meeder Asset Management Inc. now owns 351 shares of the Wireless communications provider’s stock worth $71,000 after purchasing an additional 49 shares in the last quarter. 42.49% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently commented on TMUS. Royal Bank Of Canada reduced their price objective on shares of T-Mobile US from $240.00 to $230.00 and set an “outperform” rating for the company in a research note on Monday. Barclays reduced their target price on shares of T-Mobile US from $245.00 to $230.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 8th. Freedom Capital upgraded shares of T-Mobile US from a “hold” rating to a “strong-buy” rating in a research report on Friday, April 17th. Bank of America raised T-Mobile US from a “neutral” rating to a “buy” rating and set a $220.00 price target for the company in a research report on Monday, July 6th. Finally, Deutsche Bank Aktiengesellschaft cut their target price on shares of T-Mobile US from $300.00 to $285.00 and set a “buy” rating for the company in a research note on Thursday, April 30th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, T-Mobile US presently has an average rating of “Moderate Buy” and a consensus price target of $254.56.

Trending Headlines about T-Mobile US

Here are the key news stories impacting T-Mobile US this week:

• Positive Sentiment: T-Mobile beat second-quarter earnings estimates, reporting $3.13 per share versus the $2.49 consensus, while profit also improved from a year ago. T-Mobile (TMUS) Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company raised its full-year adjusted free cash flow forecast, helped by customers migrating to higher-priced premium plans, which supports the outlook for stronger cash generation. T-Mobile raises free cash flow forecast as customers migrate to premium plans
• Positive Sentiment: Management highlighted continued strong account growth and industry-leading 9% service revenue growth, suggesting healthy demand and improving customer monetization. T-Mobile Delivers Continued Strong Account Growth, Translating into Industry-Leading Service Revenue Growth Driven by Widening Differentiation
• Neutral Sentiment: T-Mobile also announced that Samsung’s new Galaxy foldables and wearables will launch on its network, a modest near-term catalyst tied to device sales and customer promotions. Get More from Samsung’s New Galaxy Foldables at T-Mobile
• Negative Sentiment: Investors were disappointed by softer-than-expected revenue of $22.79 billion versus the $22.95 billion estimate, which appears to be weighing on the shares despite the earnings beat. T-Mobile Stock Falls. What’s Overshadowing Earnings Beat.

About T-Mobile US

T-Mobile US is a national wireless carrier that provides mobile voice, messaging and data services to consumers, businesses and wholesale customers across the United States, Puerto Rico and the U.S. Virgin Islands. The company operates a nationwide mobile network and offers device sales, equipment financing and support services through retail stores, online channels and distribution partners. T-Mobile positions its products around bundled service plans, device offerings and value-added features for both individual and enterprise customers.

Product offerings include postpaid and prepaid wireless plans under the T-Mobile and Metro by T-Mobile brands, as well as connectivity solutions for small and large businesses.