There are 2 articles on this stock available only to PRO subscribers.
From other sites
at Zacks.com (Fri, 4:04PM)
at CNBC.com (Fri, 11:14AM)
at Zacks.com (Wed, 6:40PM)
at Zacks.com (Wed, 3:40PM)
at Investor's Business Daily (Tue, 3:37PM)
at CNBC.com (Tue, 2:44PM)
at CNBC.com (Tue, 1:34PM)
at Zacks.com (Mon, 6:20PM)
at Zacks.com (Mon, 5:55PM)
- T-Mobile looks to boost ARPU with Data Stash's minimum 3GB+ requirement and looks to upsell entry level users higher to attain the value features.
- With only a 1GB threshold tablet plan minimum, Data Stash can complement tablet promotions to drive 2015 tablet net additions.
- With the new crop of new prime customers switching to T-Mobile for value, Data Stash is another value feature that can be used for subscriber retention.
T-Mobile Subscriber Momentum Expected To Continue As ARPU Becomes Pressurized
- Company has done well in competitive environment and has managed to build solid subscriber momentum in the third quarter.
- Growth expected to continue in future due its competitive pricing and industry-best 4G LTE speeds.
- ARPU to be pressurized in the future due to aggressive pricing, which limits management’s ability to expand margins.
iPhone 6: T-Mobile Brings Exciting Cyber Monday Deals
- T-Mobile continues making impressive progress in growing the customer base.
- The lack of focus on the bottom line is a red flag to investors.
- As long as the 2015 EPS trend is down, investors must avoid the stock.
- Healthy growth in postpaid subscriber base due to luring subscribers with attractive pricing offers and Un-carrier strategies.
- Company has favorable growth prospects lined up to grow subscriber base and fuel top-line numbers.
- TMUS all geared up to expand margins and add towards growth of bottom-line numbers.
- T-Mobile added 2.3 million postpaid customers surpassing AT&T’s and Verizon’s net additions for the third quarter. Revenue was almost in-line but the company missed EPS estimate, thanks to the aggressive pricing strategy.
- I maintain the $39 price target amid continuing subscriber momentum.
- The previous piece clearly mentioned that T-Mobile will continue to add subscribers amid un-carrier incentives. However, any strategy to improve ARPU can hurt subscriber growth during the next year.
T-Mobile Q3 Earnings: Are Investors 'Getting More'?
- T-Mobile is still small compared to competitors T and VZ.
- Financials are booming for the smaller telecommunications company relative to giants.
- Though seeing volatility today, low stock price may indicate a good time to get involved in the company.
- Iliad ends pursuit of acquiring a large position in T-Mobile.
- Investors should dump the stock.
- The original article anticipated that a positive outcome wasn't likely for a T-Mobile sell as time passed due to the ongoing price wars in the domestic wireless market.
- Company posted record number of gross ads in August.
- Postpaid ARPU and churn rate don’t paint encouraging outlook for company.
- The company announced its new initiative with free WiFi calling and text messages.
- TMUS retains attractiveness for M&A activity.
- This 4th place wireless telecom is making a serious move for third place.
- There’s still a potential for a buyout, but there’s more upside if the company goes at it alone.
- Shares are down 20% from their 52-week highs from just four months ago and looks to be a buying opportunity.
Strategic Initiatives And Un-Carrier Strategies Key To Earning T-Mobile A Bullish ThesisEquity Watch • Mon, Sep. 22
- Company doing well by expanding postpaid subscriber base through ongoing strategic initiatives.
- Stays well on track to improving postpaid subscriber growth and competitive position in industry.
- Company likely to benefit from attractive pricing for iPhone 6 and 6 Plus.
T-Mobile: Organic Growth, Acquisitive Potential Justifies A 25% Upside
- T-Mobile continues to add subscribers due to aggressive pricing plans like Simple Choice.
- There is evidence of network quality improvement, and the company is further investing in airwaves.
- Going forward, T-Mobile is planning to maintain subscriber momentum through differentiated offerings that will result in stable ARPU.
- Price target is upgraded to $39 amid organic growth prospects and acquisitive potential of T-Mobile.
- T-Mobile announced record branded customer additions.
- Stock remains a short-term buy based on subscriber momentum.
- Subscriber additions were anticipated to help T-Mobile bounce back, but long-term issues loom with plunging earnings estimates.
- Deutsche Telekom lowered the hurdle for buying T-Mobile.
- The potential acquirers face debt concerns, especially if Deutsche Telekom still wants mostly cash.
- Domestic wireless war is likely pressuring Deutsche Telekom to exit via a lower offer.
- Although a Sprint deal is off the table, there's still other suitors.
- There's a motivated seller in T-Mobile's parent company.
- And there's plenty of value in T-Mobile's business model given its industry-changing initiatives.
- Postpaid customers are leaving.
- Prepaid customers are leaving.
- Debt is rising even without the rumored T-Mobile buyout.
T-Mobile Earns A Neutral Thesis As Potential Merger With Sprint Collapses
- Company posted strong postpaid and prepaid net additions in second quarter.
- Continues to invest heavily in network and expand 4G LTE framework.
- TMUS suffers from declining ARPU and high churn rate.
T-Mobile: All Indicators Show It Is A Stock To Buy
- Company has been growing its postpaid subscriber base with strategic initiatives that are fueling top-line growth.
- Subscriber base growth seems strong with company’s commitment to introducing innovative un-carrier strategies and family plan offerings.
- TMUS’ strong EBITDA margin growth trend likely to continue.
Yesterday, 12:33 PM
- The FTC had accused T-Mobile (TMUS +1.5%), along with its three nationwide rivals, of billing users for unauthorized charges related to mobile content/services (i.e. cramming).
- The carrier will pay at least $90M to subscribers hit with the charges. It will also pay $18M in state fines, and $4.5M to the FCC.
- AT&T has already agreed to pay $105M to settle similar charges. A $105M settlement with Sprint is on tap.
Tue, Dec. 16, 2:34 PM
- A new service feature called Data Stash will allow T-Mobile (TMUS -1.7%) subs to roll over any unused data from a monthly bucket to subsequent months.
- There's no limit on how much data can be stored. New customers will also get a 10GB data reserve on top of their monthly allotments.
- The incentive comes after T-Mobile began allowing users to add tablets to their postpaid plans for free in April. Last year, it struck deals to give subscribers free 3G data in dozens of international markets.
- A promo involving relatively cheap unlimited 4G family plans was launched last week.
Fri, Dec. 12, 2:15 PM
- Less than a year after unloading its 45% Verizon Wireless stake for $130B, Vodafone (VOD -3.1%) says it will re-enter the U.S. mobile market as an MVNO leveraging T-Mobile's (TMUS -0.4%) network. A launch is expected in "late autumn 2015."
- The service will be aimed at the 400 U.S.-based multinationals Vodafone already counts as clients, as well as the 500 foreign multinational clients that "have a strong U.S. presence."
- The choice of T-Mobile as a partner will likely raise some eyebrows among Vodafone clients, given the "Un-carrier" has a much smaller corporate customer base than Verizon and AT&T. T-Mobile's penchant for aggressive pricing might have helped win Vodafone over.
Fri, Dec. 12, 6:56 AM
- SoftBank (OTCPK:SFTBY) will soon downsize its Silicon Valley offices, Reuters reports, signaling the company won't revive efforts to buy T-Mobile (NYSE:TMUS).
- The Japanese telecommunications company is also looking to rent out one of two buildings it leased at an annual cost of over $3M, which it had previously designated for T-Mobile.
- The "bulk" of its West Coast manpower is now set to be transferred elsewhere, including the dispersal of development engineers to Sprint (NYSE:S) headquarters in Kansas.
Tue, Dec. 9, 4:12 PM
- In its latest aggressive pricing maneuver, T-Mobile (TMUS -8.5%) is charging just $100/month for unlimited voice, text, and 4G data for a family of two, and $40/line for each additional user up to a limit of 10. Data tethering is capped at 5GB.
- With a family of four paying $180/month, the self-proclaimed Un-carrier asserts its plan is respectively $30/month, $100-$140/month, and $180/month cheaper than comparable AT&T, Sprint, and Verizon plans.
- The announcement comes in the wake of a Verizon Q4 warning (blamed in part on price pressure) that sparked a selloff in U.S. mobile carriers. AT&T later followed suit by stating it expects churn to be up Y/Y in Q4.
Tue, Dec. 9, 9:48 AM
- With price pressure from rivals as intense has ever, Verizon has warned it expects to see "short-term pressure" on its wireless margins and EPS, and that retail postpaid disconnects are "trending higher" both Q/Q and Y/Y.
- AT&T (T -2.8%) and Sprint (S -2.3%) aren't responding well to the news; the S&P is down 0.9%. Sprint's moves under new CEO Marcelo Claure (launched in an attempt to stem ongoing postpaid share losses) appear to be contributing to Verizon's challenges. Big Red has been gaining postpaid share relative to AT&T and Sprint, though not T-Mobile.
- T-Mobile (TMUS -5.1%) is down sharply, but shares had already sold off before the Verizon news, thanks to T-Mobile's convertible offering announcement.
Mon, Dec. 8, 5:41 PM
Mon, Dec. 8, 4:10 PM
- T-Mobile (NYSE:TMUS) is offering 17.4M shares of mandatory convertible preferred stock featuring a liquidation preference of $50/share. Underwriters will have a 2.6M-share overallotment option.
- Proceeds will be used for "general corporate purposes, including capital investments and acquisition of additional spectrum unrelated to spectrum it may obtain in the Federal Communications Commissions pending AWS-3 spectrum auction."
- Total AWS-3 auction bids have surpassed $41B. Though Verizon, AT&T, and Dish are believed to be bidding more aggressively, T-Mobile's bill could still be significant. The carrier already raised debt in advance of the auction.
- Some of the new offering's proceeds could end up going towards 2016's 600MHz. incentive auction, which is expected to be bigger than the AWS-3 auction, and where T-Mobile is expected to spend heavily to address a relative shortage of low-band spectrum.
- T-Mobile's net debt totaled $17.3B at the end of Q3.
Tue, Dec. 2, 11:49 AM
- In a promo that starts on Friday, Sprint (S -1.2%) will offer AT&T (T -1%) and Verizon (VZ -0.7%) subs who switch to Sprint unlimited talk/text plans similar to the ones they're currently on a 50% price cut.
- One catch: Users have to trade in their existing AT&T/Verizon phones, and make an unsubsidized purchase of a Sprint phone (via leasing, installment plans, or a regular retail purchase).
- A Sprint rep "will select the service plan that most closely matches the data allowance" of a user's AT&T/Verizon plan. The carrier will cover up to $350 worth of early termination fees and installment plan balances per line.
- The offer is the latest in a series of aggressive promos and price cuts launched by new Sprint CEO Marcelo Claure, who has made a priority out of halting postpaid share losses. In addition to AT&T/Verizon, the promo takes aim at T-Mobile (TMUS -0.4%), which has been grabbing postpaid share (especially on the low-end) with its own aggressive offers.
- T-Mobile and Verizon's wireless service revenue respectively rose 10.6% and 4.8% in Q3, while AT&T and Sprint's fell 0.2% and 5%.
Wed, Nov. 19, 6:48 PM
- Bidding in the FCC's AWS-3 spectrum auction has reached $24.1B barely 24 hours after topping $14B. Through 15 rounds, $1.19B alone was bid on a 10x10 MHz. license for the NYC area.
- "While bids could suddenly slow down, the auction appears on pace to blow through the top end of our expected range," writes BTIG's Walter Piecyk. Whereas Piecyk initially forecast an average bid of $0.75-$1.25/MHz./POP, spending has already topped $1.50/MHz./POP.
- Deep-pocketed AT&T (NYSE:T) and Verizon (NYSE:VZ) are likely the "most aggressive bidders," notes JPMorgan's Philip Cusick; he suspects T-Mobile (NYSE:TMUS) is bidding more cautiously. New Street Research thinks AT&T and Verizon "will likely both go after a 10x10 MHz pair in all of the critical markets."
- Tim Farrar suspects DISH is bidding up prices on the assumption AT&T/Verizon will respond by upping their bids regardless of the cost. This morning, Piecyk estimated the auction had served to increase the value of Dish's existing spectrum to ~$2/MHz./POP from ~$1.50/MHz./POP, thereby making Dish worth $104/share rather than a prior estimate of $85/share. Dish rose 10% in regular trading.
- Though bidding is expected to slow down soon, it might not fully end for a few more weeks. Until then, the FCC won't disclose the names of winning bidders, or how much they're paying.
Tue, Nov. 18, 4:09 PM
- Following 14 rounds, total bids in the FCC's AWS-3 (high-band) spectrum auction have reached $14.18B. Bids have been placed for 1,303 of the 1,614 available licenses, and a $10.1B aggregate reserve price has been surpassed.
- AT&T (T -0.4%), Verizon (VZ -0.3%), T-Mobile (TMUS -0.3%), and Dish (DISH +4%) are among the companies bidding on the spectrum, which includes paired licenses (50GHz. altogether) in the 1.7GHz. and 2.1GHz. bands (good for high-density urban areas). T-Mobile raised debt ahead of the auction to help finance its efforts.
- The furious bidding pace highlights the strong interest U.S. carriers have in growing their spectrum portfolios to cope with rapid mobile data traffic growth. An even bigger auction for 600MHz. (low-band) spectrum was recently delayed until 2016; AT&T and Verizon will face purchase restrictions in that one.
Tue, Nov. 4, 12:38 PM
- William Blair's Jim Breen, reiterating an Underperform on Sprint (S -16.9%) following its disappointing Q3 numbers and EBITDA guidance cut: "Sprint reported a Sprint-platform postpaid churn rate that was its highest in the past six years ... postpaid and prepaid losses reflect intense competition, specifically related to competitors’ early- termination fee reimbursements."
- Breen expects Sprint 'will struggle to win high-end subscribers from Verizon and AT&T as their 4G LTE lead and shared data plans will likely have the effect of decreasing churn even further." He also notes improving Sprint's oft-criticized network quality will require significant capex; Sprint just slashed its 2014 capex budget by ~$1B.
- Canaccord's Greg Miller (Hold) isn't convinced Sprint's relatively positive September metrics spell a turnaround. "Preliminary reports have not consistently translated into sustainable trends that improve shareholder value over the long-term ... We look forward to additional details on yet another strategy to restore the company and make it more competitive and successful."
- Goldman (Neutral) is more encouraged by the September numbers, but also expects the costs of boosting subscriber adds to take a toll on ARPU and EBITDA. It expects postpaid phone net losses to fall to 240K in 2015 from 2.2M in 2014.
- On the CC (transcript), Sprint said it expects 2014 EBITDA to be "neutral to modestly higher" compared with 2014 levels. Jefferies notes this is 20% below consensus.
- Cowen (Outperform) still thinks a turnaround can happen. "We believe mgmt. is making the right decisions and that this should lead to outsized subs/EBITDA growth in coming quarters and consequent improvement in stock price."
- Low-end rival T-Mobile (TMUS -3.7%), which has been performing much better than Sprint in recent quarters, is also lower.
- Yesterday's earnings coverage
Tue, Oct. 28, 11:23 AM
- Though T-Mobile (TMUS +2.5%) missed Q3 revenue/EPS estimates, it delivered 1.379M branded postpaid net subscriber adds, up from 908K in Q2 and a record high.
- Full-year branded postpaid net add guidance has been hiked to 4.3M-4.7M from 3M-3.5M. The costs of adding these subscribers has led T-Mobile to forecast adjusted EBITDA will be "at the very low end" of a prior $5.6B-$5.8B guidance range. Cash capex guidance is unchanged at $4.3B-$4.6B.
- Branded postpaid phone net adds totaled 1.175M, up sharply from Q2's 579K and evidence of further share gains against Verizon, AT&T, and Sprint. Branded prepaid net adds rose to 411K from Q2's 102K. Wholesale net adds (MVNOS and M2M services) rose to 555K from 460K.
- Service revenue rose 10.6% Y/Y to $5.7B, and equipment revenue 6.4% to $1.47B. Branded postpaid average billings per user rose to $61.59 from $59.79 in Q2 and $59.08 a year ago. Branded postpaid churn was 1.6% vs. 1.5% in Q2 and 1.7% a year ago.
- T-Mobile ended Q3 with 25.9M branded postpaid subs, 16.1M branded prepaid subs, and 10.9M wholesale subs. Net debt totaled $17.3B, up $100M Q/Q.
- Q3 results, PR
Mon, Oct. 27, 11:50 PM
Fri, Oct. 24, 6:58 PM
- Thanks in large part to a 41% increase in taxes, America Movil's (AMX -0.9%) Q3 net income fell 39% Y/Y to 10.1B pesos ($746M). EBITDA (adjusted for the Telekom Austria deal) rose 0.4% to 69.2B pesos ($5.1B).
- On an adjusted basis, service revenue rose 3.8% to 198.6B pesos ($14.6B), a slight improvement from Q2's 3.6% growth. Equipment revenue rose 6.2% to 22.2B pesos ($1.6B), and costs/expenses 5.8% to 151.7B pesos ($11.2B).
- Total wireless lines +0.1% Q/Q and +0.5% Y/Y to 286.8M. Mexican lines fell 1.1% Q/Q to 70.5M amid regulatory pressure, but Brazilian lines rose 1.3% to 69.6M, and U.S. lines (via TracFone's prepaid services)1.5% to 25.9M.
- Wireline revenue-generating units (RGUs) rose 1.8% Q/Q and 6.8% Y/Y to 77.6M. Mexican RGUs fell 0.1% Q/Q to 22.2M, while Brazilian RGUs rose 3.1% to 35.6M (~46% of total RGUs).
- Net debt fell by $2.3B during the quarter to $36.2B.
- AMX used its Q3 CC to state its isn't currently talking to anyone about a T-Mobile USA (TMUS +1.3%) acquisition. A German magazine speculated yesterday (while reporting Deutsche Telekom is still open to a T-Mobile sale) AMX could bid for T-Mobile.
- Earnings Release (.pdf)
Fri, Oct. 24, 1:16 PM
- The FCC's Incentive Auction, which will auction off a giant chunk of low-frequency (600 MHz.) spectrum historically used for TV broadcasts, is now set for early 2016 instead of mid-2015.
- The agency cites legal challenges from broadcasters, as well as the auction's complexity and "the need for all auction participants to have certainty well in advance."
- A recent FCC study (.pdf) meant to appease broadcasters estimated the auction could raise $45B. Sprint (S -0.1%) and T-Mobile (TMUS +0.1%), whose rural and in-building coverage has suffered from a dearth of low-frequency spectrum, are expected to spend aggressively.
- AT&T (T +0.1%) and Verizon (VZ +1%) are also expected to bid heavily, though the FCC plans to limit their purchases on account of their already-massive low-frequency assets. AT&T has said it plans to spend at least $9B.
- Dish (DISH +1.4%), which has a large chunk of high-frequency spectrum it's still trying to find a use for, plans to participate as well.
TMUS vs. ETF Alternatives
Other News & PR