Zacks Research Lowers Earnings Forecast for T-Mobile US

T-Mobile US, Inc. (NASDAQ:TMUS) has seen a revision in earnings expectations as analysts from Zacks Research announced a decrease in their earnings per share (EPS) estimates for the first quarter of fiscal year 2025. According to a research note released to investors on January 2nd, the analyst A. Chatterjee now projects that the wireless communications provider will achieve an EPS of $2.43 for the upcoming quarter, adjusting down from a previous estimate of $2.56. For the current full fiscal year, the consensus earnings estimate for T-Mobile US stands at $9.38 per share.

Furthermore, Zacks Research has provided additional EPS forecasts for T-Mobile US, predicting $2.50 for Q2 2025, $2.40 for Q4 2025, an overall earnings estimate of $9.86 for FY 2025, $2.91 for Q1 2026, and $3.08 for Q4 2026.

Analyst Ratings and Price Targets

Several equity analysts have recently weighed in on T-Mobile US stock. Citigroup raised its price target from $210.00 to $254.00 while assigning a "buy" rating in a note on October 21st. Morgan Stanley initiated coverage with an “overweight” rating and set a target price of $280.00 on December 16th. Additionally, TD Cowen and JPMorgan Chase & Co. both increased their price targets to $250.00 and assigned a “buy” rating for T-Mobile US. As of now, seven investment analysts issued hold ratings while fourteen analysts labeled it a buy, with one strong buy rating. MarketBeat.com reports an average rating of "Moderate Buy" and a target price of $245.74 for the stock.

T-Mobile US Stock Performance

As of Monday, T-Mobile US shares opened at $212.38, showing a decrease of 3.1%. The company maintains a debt-to-equity ratio of 1.23 and a quick ratio of 0.99, alongside a current ratio of 1.08. The stock has fluctuated between a low of $158.84 and a high of $248.15 over the last fifty-two weeks. T-Mobile US has a market capitalization of approximately $246.46 billion, with a price-to-earnings ratio of 24.22 and a PEG ratio of 1.18. The company’s 50-day moving average stands at $231.22, while the 200-day moving average is at $208.36.

Recent Earnings Report

The last quarterly earnings report for T-Mobile US was released on October 23rd, where the company reported an EPS of $2.61, exceeding analysts’ expectations of $2.32 by $0.29. The company also registered a return on equity of 16.35% and a net margin of 12.96%. Revenue for the quarter was reported at $20.16 billion, surpassing analyst forecasts of $20.01 billion, demonstrating a 4.7% growth year-over-year compared to the previous year's earnings of $1.82 per share.

Institutional Holdings

Recent changes in institutional ownership of T-Mobile US is notable. In Q3, FMR LLC increased its stake by 13.4%, acquiring an additional 1,522,394 shares totaling approximately $2.66 billion. Barclays PLC also raised its holdings by 38.3%, while Wellington Management Group LLP raised their stake by 4.0%. Significant investments continued with Franklin Resources Inc. and Nordea Investment Management AB enhancing their positions as well. Currently, institutional investors hold 42.49% of the stock.

Insider Trading Activity

In insider trading news, EVP Mark Wolfe Nelson sold 42,769 shares on October 16th at an average price of $216.26, totaling approximately $9.25 million. This reduced his ownership by 40.87%. Another director, Srikant M. Datar, sold 1,000 shares on November 27th at an average price of $247.19. Insider selling has accounted for 206,969 shares in the last 90 days, valued at about $46.66 million, with insiders owning 0.67% of the stock.

Dividend Announcement

T-Mobile US has declared a quarterly dividend of $0.88 per share payable on March 13th. Investors on record by February 28th will receive this dividend, which projects an annualized yield of 1.66%. The current dividend payout ratio stands at 40.14%.

About T-Mobile US

T-Mobile US, Inc. operates mobile communications services across the United States, including Puerto Rico and the U.S. Virgin Islands. The company provides a range of services such as voice, messaging, and data to its customers, along with various wireless devices, financing options, and high-speed internet services.

Earnings, Stocks, Analysts