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T-Mobile US, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
Investors in T-Mobile US, Inc. (NASDAQ:TMUS) had a good week, as its shares rose 6.8% to close at US$156 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$24b were in line with what the analysts predicted, T-Mobile US surprised by delivering a statutory profit of US$3.22 per share, a notable 11% above expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for T-Mobile US from 24 analysts is for revenues of US$98.8b in 2027. If met, it would imply a credible 5.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 31% to US$13.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$98.5b and earnings per share (EPS) of US$13.93 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for T-Mobile US
The analysts reconfirmed their price target of US$227, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic T-Mobile US analyst has a price target of US$296 per share, while the most pessimistic values it at US$165. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that T-Mobile US' rate of growth is expected to accelerate meaningfully, with the forecast 4.3% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.0% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 4.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that T-Mobile US is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$227, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for T-Mobile US going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for T-Mobile US that you need to take into consideration.
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