UBS analyst John Hodulik maintains his Buy rating on shares of T-Mobile US Inc TMUS and $80 price target following strong second-quarter earnings results.
The company posted $10.2 billion in sales, significantly beating the Street’s estimated $9.81 billion. EPS came in a $0.67.
Management also upped guidance for 2017 adjusted EBITDA and postpaid customer gains.
Shares opened Thursday up 3.1 percent immediately began working down to below Wednesday’s close, a surprise for many investors reacting to bullish analyst commentary.
Growth, One Way Or Another
Investors may be disappointed by the lack of news on the M&A front during the earnings call.
T-Mobile has been put on the sidelines by Sprint Corp S, which has entered exclusive negotiations with Comcast Corporation CMCSA and Charter Communications, Inc. CHTR about a potential wireless service partnership.
Hodulik isn’t concerned though, saying he got the impression T-Mobile is seeking to restart talks with Sprint when the exclusive negotiations close later this month.
While a merger with Sprint would likely provide the greatest possible value-creation, “management sees a number of strategic options available to it,” according to Hodulik.
Something that ought to get investors excited though, is the potential for T-Mobile to begin paying out dividends.
Management indicated that it would only do so if consolidation proved to be impossible.
AT&T Inc. T and Verizon Communications Inc. VZ have both paid dividends for decades.
Keep up with dividend changes and the latest business news in real-time with Benzinga Pro.
Related Links: Has All The Negative Sentiment Over Cord-Cutting Turned Entertainment Stocks Into A Bear Trap? Investors Seem To Be Materially Discounting T-Mobile Shares Based On 2 Factors _________ Image Credit: By Mike Mozart [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.