Erste Group Bank Lifts Earnings Estimates for T-Mobile US

Key Points

• Erste Group Bank raised its FY2027 EPS estimate for T-Mobile US to $13.81 from $13.79, above the current full-year consensus estimate of $11.17.
• T-Mobile US reported quarterly EPS of $2.99, beating expectations of $2.59, while revenue rose 7.9% year over year to $22.79 billion.
• The company increased its quarterly dividend to $1.17, or $4.68 annually, representing a 2.9% yield; analysts maintain a “Moderate Buy” consensus with a $244.65 target price.

T-Mobile US, Inc. (NASDAQ:TMUS - Free Report) - Equities researchers at Erste Group Bank increased their FY2027 EPS estimates for T-Mobile US in a report issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the Wireless communications provider will post earnings of $13.81 per share for the year, up from their prior estimate of $13.79. The consensus estimate for T-Mobile US's current full-year earnings is $11.17 per share.

T-Mobile US (NASDAQ:TMUS - Get Free Report) last posted its 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. The company had revenue of $22.79 billion during the quarter, compared to analyst estimates of $22.95 billion. T-Mobile US had a net margin of 11.45% and a return on equity of 20.16%. T-Mobile US's revenue for the quarter was up 7.9% on a year-over-year basis. During the same period in the prior year, the business posted $2.84 earnings per share.

TMUS has been the subject of a number of other research reports. UBS Group lowered their price target on T-Mobile US from $255.00 to $235.00 and set a "buy" rating for the company in a research report on Friday, July 24th. Morgan Stanley cut their price objective on T-Mobile US from $260.00 to $230.00 and set an "overweight" rating on the stock in a research report on Tuesday, July 7th. Wolfe Research reissued a "peer perform" rating on shares of T-Mobile US in a research note on Friday, August 14th. JPMorgan Chase & Co. decreased their target price on T-Mobile US from $275.00 to $260.00 and set an "overweight" rating for the company in a report on Monday, September 21st. Finally, Wells Fargo & Company decreased their target price on T-Mobile US from $170.00 to $169.00 and set an "equal weight" rating for the company in a report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, T-Mobile US presently has an average rating of "Moderate Buy" and a consensus price target of $244.65.

T-Mobile US Stock Up 3.3%

NASDAQ TMUS opened at $158.79 on Friday. T-Mobile US has a 1 year low of $147.90 and a 1 year high of $225.93. The stock has a market capitalization of $170.33 billion, a PE ratio of 16.63, a PEG ratio of 0.96 and a beta of 0.33. The company has a debt-to-equity ratio of 1.48, a current ratio of 0.92 and a quick ratio of 0.83. The business's 50-day moving average is $171.10 and its 200 day moving average is $180.85.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the business. Farmers & Merchants Investments Inc. grew its position in T-Mobile US by 6.5% during the 3rd quarter. Farmers & Merchants Investments Inc. now owns 4,730 shares of the Wireless communications provider's stock valued at $771,000 after purchasing an additional 287 shares during the last quarter. Sterling Capital Management LLC increased its stake in T-Mobile US by 1.3% during the 3rd quarter. Sterling Capital Management LLC now owns 91,661 shares of the Wireless communications provider's stock valued at $14,948,000 after purchasing an additional 1,191 shares in the last quarter. XXI Wealth LLC purchased a new position in T-Mobile US in the third quarter worth about $318,000. Yousif Capital Management LLC raised its holdings in T-Mobile US by 4.8% in the third quarter. Yousif Capital Management LLC now owns 52,554 shares of the Wireless communications provider's stock worth $8,571,000 after buying an additional 2,424 shares during the last quarter. Finally, MBL Wealth LLC bought a new position in shares of T-Mobile US in the third quarter worth approximately $504,000. 42.49% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other T-Mobile US news, CAO Daniel James Drobac sold 772 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $178.33, for a total transaction of $137,670.76. Following the completion of the transaction, the chief accounting officer owned 35,118 shares of the company's stock, valued at approximately $6,262,592.94. This trade represents a 2.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.32% of the company's stock.

T-Mobile US Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Wednesday, November 25th will be issued a $1.17 dividend. This represents a $4.68 dividend on an annualized basis and a yield of 2.9%. This is a positive change from T-Mobile US's previous quarterly dividend of $1.02. The ex-dividend date is Wednesday, November 25th. T-Mobile US's dividend payout ratio is currently 42.72%.

About T-Mobile US

T-Mobile US, Inc NASDAQ: TMUS is a wireless communications company that provides mobile voice, messaging and data services to consumers, businesses and government customers in the United States, Puerto Rico and the U.S. Virgin Islands. Its offerings include postpaid and prepaid wireless plans, connected devices, broadband internet and other communications services.

The company operates a nationwide wireless network, including 5G services, and sells smartphones, tablets, connected devices and related accessories through retail stores, online channels and third-party distributors.

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