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Is a Beat in Store for T-Mobile (TMUS) This Earnings Season?

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T-Mobile US, Inc. (TMUS - Free Report) is scheduled to report first-quarter 2022 results on Apr 27, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 587.5%. It pulled off a trailing four-quarter earnings surprise of 176.7%, on average.

The Bellevue, WA-based wireless carrier is expected to have recorded year-over-year higher revenues on the back of customer growth and 5G network expansion.

During the quarter, T-Mobile inked a 12-year deal with Crown Castle to support its nationwide 5G network build-out with more access to the latter’s towers and small-cell locations. The deal enables T-Mobile to expand the reach of its industry-leading 5G network, serving more customers across the country. It is integral to T-Mobile’s efforts to continue expanding its 5G network while realizing synergies following its merger with Sprint.

T-Mobile invested almost $3 billion in the Federal Communications Commission’s Auction 110, securing additional mid-band spectrum to boost its Ultra Capacity 5G network. Mid-band spectrum is ideal for 5G, providing the perfect balance of capacity and coverage. The company got an average of 21 MHz of mid-band spectrum in areas home to 184 million people across the United States.

T-Mobile announced a series of moves to accelerate 5G developer innovation. Initiatives include a new developer platform, innovation center, venture investments, T-Mobile Accelerator participants and 5G partnerships with Disney and Red Bull. Dubbed 5G Forward, these moves will strengthen the 5G innovation ecosystem and help creators build the 5G future.

The Zacks Consensus Estimate for T-Mobile’s revenues is pegged at $20,129 million, which indicates growth of 1.9% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share is pegged at 41 cents, suggesting a decline of 55.4%.

What Our Model Says

Our proven model predicts an earnings beat for T-Mobile this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s just the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: T-Mobile’s Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +15.54%, as the former is pegged at 47 cents and the latter at 41 cents.

TMobile US, Inc. Price and EPS Surprise

TMobile US, Inc. Price and EPS Surprise

TMobile US, Inc. price-eps-surprise | TMobile US, Inc. Quote

Zacks Rank: T-Mobile currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:

Hess Corporation (HES - Free Report) is slated to release first-quarter 2022 results on Apr 27. Hess has an Earnings ESP of +10.25% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

RPC, Inc. (RES - Free Report) is scheduled to release first-quarter 2022 results on Apr 27. RPC has an Earnings ESP of +2.27% and a Zacks Rank #2.

Helmerich & Payne, Inc. (HP - Free Report) has an Earnings ESP of +8.14% and a Zacks Rank #2. Helmerich & Payne is set to report second-quarter fiscal 2022 results on Apr 27.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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