T-Mobile reported mixed Q2 results, beating EPS estimates but missing revenue. Despite reaffirming full-year guidance and raising cash flow forecasts, two analysts lowered their price targets, indicating some concern about future growth or valuation.
T-Mobile's Q2 earnings were a mixed bag, with adjusted EPS exceeding expectations but revenue falling short. While the company maintained its full-year outlook for postpaid net additions and core adjusted EBITDA, and even raised its net cash from operations forecast, the revenue miss and subsequent price target reductions by Keybanc and Benchmark analysts suggest a cautious outlook. This indicates that despite strong underlying operational guidance, the market may be concerned about top-line growth or valuation. Short-term, the stock saw a slight pre-market rise, but the analyst downgrades could exert downward pressure. Long-term, the reaffirmed guidance suggests continued operational strength, but investor sentiment might be tempered by the revenue miss and analyst adjustments.