{"id":39154,"date":"2025-04-26T11:35:36","date_gmt":"2025-04-26T11:35:36","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/26\/t-mobile-falls-6-on-lagging-phone-subscriber-growth-analysts-acknowledge-market-strength-but-say-tmus-is-overvalued\/"},"modified":"2025-04-26T11:35:36","modified_gmt":"2025-04-26T11:35:36","slug":"t-mobile-falls-6-on-lagging-phone-subscriber-growth-analysts-acknowledge-market-strength-but-say-tmus-is-overvalued","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/26\/t-mobile-falls-6-on-lagging-phone-subscriber-growth-analysts-acknowledge-market-strength-but-say-tmus-is-overvalued\/","title":{"rendered":"T-Mobile falls 6% on lagging phone subscriber growth; analysts acknowledge market strength but say TMUS is overvalued"},"content":{"rendered":"
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T-Mobile US (NASDAQ: TMUS) reported better-than-expected first-quarter earnings on Thursday, but its slower-than-anticipated growth in core wireless phone subscribers weighed on investor sentiment, with shares tumbling 6.4% in premarket trading on Friday. <\/p>\n

The company posted adjusted earnings of $2.58 per share on revenue of $20.9 billion, surpassing analyst expectations of $2.47 per share and $20.6 billion in revenue, according to FactSet. <\/p>\n

A year earlier, the wireless giant had reported earnings of $2 a share on $19.6 billion in revenue.<\/p>\n

High-speed internet gains offset phone subscriber shortfall<\/h2>\n

T-Mobile added a total of 1.34 million postpaid net customers during the quarter, above Wall Street\u2019s forecast of 1.18 million. <\/p>\n

Much of that growth was driven by gains in high-speed internet users. <\/p>\n

However, the number of new postpaid phone customers, a closely watched metric, fell short. <\/p>\n

The company reported 495,000 additions, below the 504,900 that analysts had estimated and down from 532,000 in the same quarter last year.<\/p>\n

Despite the slowdown, T-Mobile reaffirmed its full-year guidance, saying it still expects total postpaid net customer additions in the range of 5.5 million to 6 million for 2025. <\/p>\n

The company also confirmed that its upcoming satellite service would be priced at $10 per month, a move seen as a value addition in an increasingly competitive market.<\/p>\n

Analysts see long-term strength but flag valuation risks<\/h2>\n

Brokerage opinion on T-Mobile remains largely optimistic, with 19 out of 30 firms maintaining a \u2018buy\u2019 or \u2018strong buy\u2019 rating, 10 having a ‘hold’ rating, and 1 ‘sell’.<\/p>\n

The median price target stands at $275, according to data compiled by LSEG. However, some analysts have raised concerns about the stock\u2019s valuation relative to its peers.<\/p>\n

RBC Capital Markets, which maintains a \u201csector perform\u201d rating with a $265 target, said T-Mobile\u2019s growing presence in the business market should help meet subscriber targets despite macroeconomic headwinds. <\/p>\n

But it noted the company\u2019s enterprise value-to-earnings ratio for fiscal year 2026 stands at 11.09, well above the industry median of 6.56.<\/p>\n

Moffett Nathanson, with a neutral rating and a $220 price target, said the stock appears insulated from ongoing trade tensions and tariffs but remains overvalued. <\/p>\n

It also added that the churn in postpaid phone subscribers was an industry-wide trend.<\/p>\n

Oppenheimer, which rates the stock \u201coutperform\u201d with a $300 target, said T-Mobile remains its top pick in the wireless telecom space.<\/p>\n

“We believe the key to the stock’s performance is the company’s 5G network and now stock buybacks,” it said.<\/p>\n

NewStreet Research, which rates the stock “buy’ with a target price of $308, said T-Mobile was “best positioned” in a market with rising competition given lower average revenue per unit (ARPU), higher capacity, and great momentum.<\/p>\n

Economic uncertainty looms over telecom, but T-Mobile confident of growth<\/h2>\n

The results come after Verizon and AT&T released mixed earnings earlier this week. <\/p>\n

Verizon beat profit estimates but reported a higher-than-expected loss in postpaid phone subscribers. <\/p>\n

AT&T met expectations and posted a slight beat in new phone customers.<\/p>\n

“In addition to having a strong runway for share gains driven by a capacity advantage, T-Mobile has more opportunity to drive EBITDA growth by matching AT&T and Verizon on price,” New Street Research analysts said<\/p>\n

The broader telecom industry is bracing for possible fallout from the Trump administration\u2019s tariffs on US trade partners. <\/p>\n

While smartphones remain temporarily exempt, the prospect of levies later in the year has introduced additional uncertainty. <\/p>\n

Analysts also caution that inflation and economic uncertainty could cause consumers to delay phone upgrades or opt for cheaper plans.<\/p>\n

\u201cConnectivity is just a core aspect of people\u2019s lives,\u201d T-Mobile CFO Peter Osvaldik told Barron’s. “This is an industry that not only weathered the pandemic but continued to grow,” he said. <\/p>\n

The post T-Mobile falls 6% on lagging phone subscriber growth; analysts acknowledge market strength but say TMUS is overvalued<\/a> appeared first on Invezz<\/a><\/p>\n

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T-Mobile US (NASDAQ: TMUS) reported better-than-expected first-quarter earnings on Thursday, but its slower-than-anticipated growth in core wireless phone subscribers weighed on investor sentiment, with shares tumbling 6.4% in premarket trading on Friday. The company posted adjusted earnings of $2.58 per share on revenue of $20.9 billion, surpassing analyst expectations of $2.47 per share and $20.6 <\/p>\n","protected":false},"author":1,"featured_media":39155,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39154","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39154"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39154\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39155"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}