Wednesday, January 7, 2015

T-Mobile US (TMUS) Stock Higher Today on User Additions Increase

NEW YORK (TheStreet) -- Shares of T-Mobile US Inc. are up by 2.08% to $27.43 in late morning trading on Wednesday, following the company's announcement it delivered its "biggest year of net customer additions" in its history. In the 2014 fourth quarter the mobile carrier said it added 1.3 million branded postpaid net customers, which gave it a total of 4.9 million net new customers for 2014. In 2013 T-Mobile gained 2 million new customers. The company exceeded its own guidance for new customers in 2014. In October, T-Mobile said it was expecting to add 4.3 million to 4.7 million net new subscribers for the year, Bloomberg reports. Exclusive Report: Jim Cramer's Best Stocks For 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. T-Mobile, which is majority owned by Deutsche Telekom , "continued to take share" from its competitors and "attracted 8.3 million net customers in 2014 who were looking for value, simplicity and transparency," company CEO John Legere said. "While my competitors are hiding behind less valuable connected device subscriber additions and managing profit expectations to the downside, T-Mobile delivered over 2.1 million customers in [the fourth quarter], while managing the balance between growth and profitability. Needless to say, 2014 was a record breaking year," Legere added. Separately, TheStreet Ratings team rates T-MOBILE US INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate T-MOBILE US INC (TMUS) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth significantly trails the industry average of 58.0%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. Net operating cash flow has increased to $1,062.00 million or 28.57% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.25%. Compared to other companies in the Wireless Telecommunication Services industry and the overall market on the basis of return on equity, T-MOBILE US INC underperformed against that of the industry average and is significantly less than that of the S&P 500. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Wireless Telecommunication Services industry. The net income has significantly decreased by 161.1% when compared to the same quarter one year ago, falling from -$36.00 million to -$94.00 million. The share price of T-MOBILE US INC has not done very well: it is down 19.92% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry. You can view the full analysis from the report here: TMUS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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