T-mobile-Logo-AH-4

Analysts Predict that T-Mobile will Claim all Postpaid Gains in Q1

April 13, 2016 - Written By Alexander Maxham

The first quarter of 2016 ended just about two weeks ago, and so far we don’t have any quarterly earnings just yet. Those typically happen at the end of this month or in early May depending on the company. This is the time where analysts typically predict what they think will happen during the earnings weeks for the carriers, and right now it looks like T-Mobile may take all of the postpaid gains for the quarter. At least if you talk to Wells Fargo Securities. They expect magenta to post 1.4 million net new users for the quarter. Extending their streak of quarters with over a million net adds. Making it their 12th. Breaking it down, these analysts believe that T-Mobile will announce 960,000 postpaid net adds for the quarter, 768,000 handsets and 440,000 prepaid net gains. And will be just short of making it a fourth straight quarter of 2 million net adds.

It’s important to remember here that the first quarter of the year is typically the slowest one. Mostly due to the fact that it’s right after the holidays, where customers typically upgrade their phones. On top of that, many smartphones don’t start to launch until Q2, with the exception of the Galaxy S7 and Galaxy S7 Edge this year. Being available for the last 3-4 weeks of the first quarter. When talking about churn, the analysts believe the company will report 1.3%, which will be the same as last year, and down 16 basis points from last quarter.

T-Mobile is no stranger to picking up all of the postpaid growth in the industry each quarter. This has been a common theme for the Uncarrier as of late. With their competitors, namely AT&T and Verizon, targeting other areas, like tablets and cars for making money. The big two have also been more interested in their bottom line rather than market share. Which is the opposite of T-Mobile. Who have been adding tons of customers each quarter.

Earnings should be beginning next week. Although none of the big four carriers have actually announced dates for their earnings calls for the first quarter just yet. So we’ll have to wait and see what happens.