T-Mobile US, Inc. provides mobile communications services under the T-Mobile, MetroPCS, and GoSmart brands in the United States, Puerto Rico, and the U.S. Virgin Islands. It offers postpaid and prepaid wireless voice, messaging and data services, and wholesale wireless services. TMUS is currently trading around $27.75 in a 52 week range of $24.50 – 35.50. The company’s stock has been underperforming the market this year with shares decreasing 17.48% year to date. Shares have traded down 3.94% in the last month.
T-Mobile will announce earnings today after the market closes. In the second quarter of 2014, T-Mobile posted revenues of $7.185 billion, 2.06% higher than the consensus estimate of $7.04 billion. It reported adjusted EPS of $0.48, 416% higher than the estimates because of a one-time charge for a noncash gain. This quarter, analysts expect the company to post revenues of $7.47 billion, a 15.7% YoY growth. Adjusted EPS is expected to be $0.048, up from a loss per share of $0.05 in the previous year. In the past eight quarters, T-Mobile has beat revenues estimates five times, and adjusted EPS estimates four times.
Looking at the company’s earnings history, TMUS has rallied 3 of the last 5 quarters. On average, the stock has moved about 5% in the last 5 quarters as a result of earnings releases. This earnings season, market makers are implying about a +- 6% move in the stock for the October 31 option chain. Coach has been trading below the Ichimoku Cloud since the beginning of August.