Analysts predict another strong quarter for T-Mobile

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Financial analysts at Jefferies are predicting strong Q3 for three of the four national carriers. Analysts expect Verizon, AT&T and T-Mobile to announce positive results, but despite its competitive plans, expect Sprint to struggle.

Of course, it didn’t take a genius to figure out T-Mobile’s third quarter results would be good. In August alone it attracted 2.7 million new customers. An insane number of gross adds. And analysts expect T-mobile’s “disproportional subscriber growth” to continue.

 

“We believe that industry postpaid net addition momentum continued on the back of an ongoing secular shift from prepaid to postpaid and strong connected device sales. T-Mobile continues to deliver disproportional subscriber growth, though AT&T and Verizon should also deliver solid results. While Sprint re-entered the fray with new pricing and promotions, we fear limited success given its network status and expect the carrier to remain a donor of subscribers.” 

With T-Mobile already having announced that its postpaid branded net adds reached 552,000 in August, Jefferies’ analysts raised their estimate for the entire quarter to 950,000. To put that in to context, T-Mobile added 1.01 million branded net adds, postpaid and prepaid combined, in the entire 2nd quarter.

As reported by Fierce Wireless:

For all of 2014, they are also lowering their expectations of total postpaid net adds at T-Mobile to 4.9 million from 5.2 million, due to lower expected tablet sales. T-Mobile itself has said it expects to add between 3 million and 3.5 million branded postpaid net subscribers in 2014. The company added 2.23 million branded postpaid customers through the first two quarters of this year.

T-Mobile is usually one of the last to show its hand when it comes to announcing a full breakdown of quarterly earnings. We can expect the earnings call to take place at the end of October. Then we’ll find out if these analysts are worth their money.

Source: FW

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