Erste Group Bank Expects Stronger Earnings for T-Mobile US

Key Points

• Erste Group Bank raised its FY2026 EPS forecast for T-Mobile US to $10.90 from $10.82, above the $10.72 consensus estimate, and projects FY2027 EPS of $13.76.
• T-Mobile US recently reported quarterly EPS of $2.99, beating estimates of $2.59, while revenue rose 7.9% year over year to $22.79 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $252.08.
• The company declared a quarterly dividend of $1.02, equivalent to $4.08 annually and a 2.3% yield; institutional investors own 42.49% of outstanding shares.

T-Mobile US, Inc. (NASDAQ:TMUS - Free Report) - Equities research analysts at Erste Group Bank boosted their FY2026 EPS estimates for shares of T-Mobile US in a research note issued to investors on Wednesday, August 5th. Erste Group Bank analyst H. Engel now forecasts that the Wireless communications provider will earn $10.90 per share for the year, up from their prior estimate of $10.82. The consensus estimate for T-Mobile US's current full-year earnings is $10.72 per share. Erste Group Bank also issued estimates for T-Mobile US's FY2027 earnings at $13.76 EPS.

Several other equities research analysts have also recently commented on TMUS. UBS Group dropped their price target on shares of T-Mobile US from $255.00 to $235.00 and set a "buy" rating on the stock in a research report on Friday, July 24th. Freedom Capital raised shares of T-Mobile US from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 17th. The Goldman Sachs Group reiterated a "buy" rating on shares of T-Mobile US in a report on Wednesday, April 29th. Royal Bank Of Canada cut their target price 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, July 20th. Finally, Scotiabank reduced their target price on shares of T-Mobile US from $263.00 to $243.00 and set a "sector outperform" rating for the company in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $252.08.

T-Mobile US Trading Up 0.6%

Shares of TMUS stock opened at $178.20 on Tuesday. The stock has a 50-day simple moving average of $181.67 and a 200 day simple moving average of $194.42. T-Mobile US has a fifty-two week low of $165.66 and a fifty-two week high of $261.56. The stock has a market capitalization of $191.15 billion, a P/E ratio of 18.66, a P/E/G ratio of 1.00 and a beta of 0.33. The company has a quick ratio of 0.83, a current ratio of 0.92 and a debt-to-equity ratio of 1.48.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The Wireless communications provider reported $2.99 earnings per share for the quarter, topping analysts' consensus estimates of $2.59 by $0.40. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. The company had revenue of $22.79 billion during the quarter, compared to analyst estimates of $22.95 billion. During the same period in the prior year, the business posted $2.84 EPS. The business's revenue for the quarter was up 7.9% compared to the same quarter last year.

Hedge Funds Weigh In On T-Mobile US

Several hedge funds have recently added to or reduced their stakes in TMUS. BlackRock Inc. acquired a new position in T-Mobile US during the 2nd quarter valued at about $6,625,275,000. Price T Rowe Associates Inc. MD raised its stake in shares of T-Mobile US by 30.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 27,795,065 shares of the Wireless communications provider's stock worth $5,643,511,000 after buying an additional 6,516,968 shares during the last quarter. State Street Corp lifted its holdings in T-Mobile US by 4.3% in the fourth quarter. State Street Corp now owns 25,281,709 shares of the Wireless communications provider's stock valued at $5,133,198,000 after buying an additional 1,047,624 shares during the period. Capital International Investors lifted its holdings in T-Mobile US by 8.2% in the fourth quarter. Capital International Investors now owns 14,847,697 shares of the Wireless communications provider's stock valued at $3,014,754,000 after buying an additional 1,121,409 shares during the period. Finally, Invesco Ltd. boosted its stake in T-Mobile US by 10.5% in the fourth quarter. Invesco Ltd. now owns 8,730,485 shares of the Wireless communications provider's stock valued at $1,772,638,000 after acquiring an additional 827,381 shares during the last quarter. Institutional investors own 42.49% of the company's stock.

Insider Activity

In other news, COO Jon Freier sold 4,799 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $190.00, for a total value of $911,810.00. Following the completion of the transaction, the chief operating officer owned 217,168 shares in the company, valued at approximately $41,261,920. This represents a 2.16% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.32% of the company's stock.

T-Mobile US Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 10th. Investors of record on Friday, August 28th will be paid a $1.02 dividend. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, August 28th. T-Mobile US's dividend payout ratio is presently 42.72%.

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.

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