T-Mobile’s 2018 Outlook
T-Mobile’s outlook on consolidated results for 2018
T-Mobile (TMUS) continues to provoke the wireless telecom (telecommunications) industry with innovative service plans and added subscriber benefits every few months rather than just competing on price. The success of these service plan innovations has been evident: major competitors Verizon (VZ), AT&T (T), and Sprint (S) have sought to copy various plan features and diversify into other businesses.
Wall Street analysts expect T-Mobile’s earnings per share (or EPS) to rise ~22.5% year-over-year (or YoY) to reach ~$3.32 in 2018 compared to $2.71 a year ago in 2017.
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Key points from T-Mobile’s outlook
T-Mobile could keep gaining postpaid customers as it continues to improve its value proposition with its new Un-Carrier initiatives. T-Mobile expects its branded postpaid net customer additions for 2018 to be in the range of 2.0 million–3.0 million.
T-Mobile’s management also expects its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) for 2018 to be between $11.3 billion and $11.7 billion. This target excludes future spectrum gains and includes expected leasing revenues of $0.6 billion–$0.7 billion. The company expects its cash capex (capital expenditure) for 2018 to be in the range of $4.9 billion–$5.3 billion excluding capitalized interest.
As of the end of 4Q17, based on its number of customers, T-Mobile remained the third-largest player in the US wireless industry. In this market, the other two large telecom companies are AT&T and Verizon. Sprint has the fourth-largest wireless customer base in the United States as of the end of the same quarter.