T-Mobile US, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, T-Mobile US, Inc. (NASDAQ:TMUS) recently reported its first-quarter numbers. T-Mobile US reported US$20b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.00 beat expectations, being 7.5% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for T-Mobile US

Taking into account the latest results, the current consensus from T-Mobile US' 26 analysts is for revenues of US$80.3b in 2024. This would reflect an okay 2.2% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 20% to US$8.96. Before this earnings report, the analysts had been forecasting revenues of US$80.5b and earnings per share (EPS) of US$8.87 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$189, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on T-Mobile US, with the most bullish analyst valuing it at US$240 and the most bearish at US$137 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await T-Mobile US shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that T-Mobile US' revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Compare this to the 18 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.4% per year. So it's pretty clear that, while T-Mobile US' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$189, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple T-Mobile US analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - T-Mobile US has 3 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.