Can T-Mobile US grab back bragging rights from AT&T as the leader in adding postpaid phone subscribers in the wireless industry? Heading into June-quarter earnings reports for AT&T stock and TMUS stock, consensus estimates are mixed on whether T-Mobile will end AT&T's recent winning streak.
Until the June 2021 quarter, T-Mobile had led the industry in new postpaid phone subscribers for about seven years. The Uncarrier-branded service provider offered lower prices than AT&T and Verizon Communications. T-Mobile also offered customers new perks.
But AT&T stepped up promotions in the June quarter of 2021. And, AT&T has led in postpaid phone subscriber additions for four straight quarters. Subscriber additions for VZ stock have lagged.
AT&T Stock: Battle For Postpaid Phone Subscribers
Why does it matter? Postpaid phone subscribers spend the most on wireless services and often sign up for unlimited data plans. They're the most profitable customers.
Amid soaring inflation, both AT&T and Verizon recently passed on higher costs to consumers through price hikes. That could give T-Mobile an edge in Q2.
According to a Bank of America report, consensus estimates say AT&T will add 552,000 postpaid phone customers in Q2, just ahead of T-Mobile's 551,000. Verizon will come in at 150,000, says the BofA report.
But a Cowen report says consensus estimates have T-Mobile adding 560,000 postpaid subscribers, with AT&T slightly behind at 541,000. Verizon again comes in last at 150,000.
BofA uses estimates from Visible Alpha while Cowen has data from Bloomberg. Meanwhile, analysts polled by Factset estimate AT&T will add 562,000 postpaid phone subscribers.
TMUS Stock Big Gainer In 2022
Earnings for AT&T stock are due July 21. VZ stock reports July 22. TMUS earnings are due July 27.
TMUS stock has gained 19% in 2022. AT&T stock has advanced 10%. VZ stock is down 2%.
Some analysts say the telecom stocks will outperform if a recession hits the U.S. economy.
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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
