NEW YORK (TheStreet) -- Shares of T-Mobile US (TMUS) are flat in morning trading after Goldman Sachs lowered its 2015 revenue and EBITDA estimates, driven mainly by the impact of 100,000 fewer estimated postpaid phone net adds in 4Q14 flowing through their 2015 expectations.
"Our lower estimate for 4Q subscribers drives our 2015E revenue lower by $76 million to $31.6 billion and our 2015E EBITDA lower by $23 millon to $7.03 billion. Our long-term EBITDA estimates are modestly lower due to our expectation that TMUS will require higher SG&A to remain competitive," Goldman said.
Goldman expects 4Q14 postpaid phone net adds down to 650,000, versus 750,000 previously, driven by lower gross adds.
Relative to their prior estimates, analysts anticipate a modest incremental impact from Sprint Corp.'s (S) aggressive marketing during 4Q which they believe pushed T-Mobile to launch limited-time promotions late in the quarter.
The firm maintained its subscriber estimates for 2015, saying they had already forecast slower growth based on ongoing competitive headwinds next year and estimate 2015 postpaid phone net adds of 2 million versus 3.7 million in 2014.
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."