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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  • sushimane

    I’m gonna say at least 1.6 million new addition.

    • APPARENTLY YOU DIDN’T READ THE FULL ARTICLE ABOUT AUGUST ALONE!

      • sushimane

        Apparently u didn’t get it. I was talking about addition to the branded postpaid not everything combine with prepaid and postpaid. Last quarter T-Mobile total addition was 1.5 million. Don’t believe look it up.

    • monkeybutts

      2.75 million new customers in the month of August alone is what John Legere stated in the last uncarrier event a few weeks ago.

      All numbers are included postpaid and prepaid

  • viztor

    It is good to see that t-mobile is able to sustain forward momentum even after the other three have responded to un carrier moves.

    The t-mobile brand has been re-established and is hopefully here to stay. As they improve their network, the brand will only grow stronger.

    • Dakota

      Profit?

      • vrm

        With the current level of capex spending, it will be profitable by end of 2015; probably before.

        If the 600 mhz auction is not taken into consideration, their capex will likely be lower in the second half of 2015 compared to current levels. So probably will be profitable sooner.

        If they decide to participate in the broadcast auction then it depends on how that goes. Or they may issue more debt and so the auction itself will not impact their earnings.

        Their capex is also subject to block A acquisitions and those are still under negotiation. You may want to listen to this Q CC sometime in october.

        • DeucesAx

          Do you know what a capex means??

  • mingkee

    Is it possible to takeover Sprint this quarter?

    • taron19119

      Yeah but its going to be more like real close

    • Jose

      I think it’ll have to be sometime during the fourth. But who knows, hopefully iPhone gave us an even better push than expected

      • Dakota

        Us? Is your service going to improve if Tmobile is #3. More customers probably will clog the network.

        • Bourgeois

          More customers, more revenue to help pay for all the network upgrades currently in the works.

        • mingkee

          Hopefully T-Mobile will increase the pipeline in NYC especially Downtown Brooklyn where it needs couple of Gbps to handle extremely massive traffic.

  • Jay J. Blanco

    Very excited about 3Q results :-)

  • krym73

    Samsung Galaxy Note 4 &Note Edge Fanatics, The Note 4 will be available for display at your local Best Buy store, and the Note Edge will be in display in select Best Buy stores. I post this because the Apple shill will not speak or post about this like other previous previews of upcoming non apple handsets, and if you have any doubts call your local Best Buy store & confirm

    • Turb0wned

      Touchjizz….

    • mingkee

      Note 4 will take advantage of band 12 when and where it’s available.

  • t-lova

    No shock.

  • jacky

    verizon customers went over to sprint’s iphone 6 has already complain about drop calls and slow sprint datra speeds. they are regretting going to sprint, so t mobile has tons of hope. sprint has tons of new iphone 6 users coming in from verizon and at&t complaining drop calls and slow data from sprint. t mobile will get those customers to t mobile network.

  • jacky

    #rescuesprintcustomers to t mobile

  • Dakota

    Fourth quarter should be even higher

    • monkeybutts

      Doubtful but you never know with people and christmas time contracts.

  • mingkee