- T-Mobile US (TMUS) has revised its forecast for postpaid net customers, now expecting between 5.6 million to 5.8 million additions for the year, up from the previous range of 5.40 million to 5.70 million.
- Core adjusted EBITDA is projected between $31.6 billion and $31.8 billion, slightly narrowed from the previous forecast of $31.50 billion to $31.80 billion.
- Capital expenditure guidance is set at $8.80 billion to $9.00 billion, refining the earlier range of $8.70 billion to $9.10 billion.
- T-Mobile anticipates adjusted free cash flow in the range of $16.70 billion to $17.00 billion, as opposed to the prior view of $16.60 billion to $17.00 billion.
- For the third quarter, T-Mobile reported earnings per share (EPS) of $2.61, an increase from $1.82 year-over-year, and above the estimated $2.43.
- Revenue rose to $20.16 billion, a 4.7% year-over-year increase, surpassing the estimated $20.01 billion.
- Service revenue reached $16.73 billion, up by 5.1% year-over-year, slightly above the $16.62 billion estimate.
- Total net customer additions stood at 1.60 million, marking a 23% year-over-year growth and topping the forecast of 1.46 million.
- Postpaid net customer additions were 1.58 million, reflecting a 28% year-over-year increase, above the 1.38 million estimate.
- Postpaid phone net customer additions totaled 865,000, showing a 1.8% rise from the previous year, and exceeding the estimated 732,863.
- Postpaid other net customer additions grew by 89% year-over-year to 710,000, surpassing the estimate of 614,240.
- Prepaid net customer additions were 24,000, a 70% decrease year-over-year, missing the estimated 80,320.
- Adjusted EBITDA was $8.24 billion, an 8.5% year-over-year increase, beating the estimated $8.13 billion.
- Postpaid monthly Average Revenue Per Account (ARPA) was $145.60, representing a 4.1% increase year-over-year, above the estimated $143.85.
- Postpaid phone Average Revenue Per User (ARPU) was $49.79, higher than the estimate of $49.22.
- Postpaid phone churn decreased slightly to 0.86%, compared to 0.87% year-over-year, bettering the estimated 0.9%.
- Prepaid ARPU amounted to $35.81, a decline of 6.2% year-over-year, close to the estimate of $35.77.
- Prepaid churn improved to 2.78%, down from 2.81% year-over-year, aligning closely with the estimated 2.73%.
- Capital expenditure for the quarter was $1.96 billion, down by 19% from the previous year, meeting the estimates.
- At the end of the period, T-Mobile had a total customer base of 127.49 million, an 8.1% year-over-year increase, above the projected 126.84 million.
- The company acknowledged its industry-leading results, highlighting the best Q3 postpaid phone net additions in a decade and record low Q3 churn, contributing to the raised guidance for 2024.
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T Mobile Us Inc on Smartkarma
Analyst Coverage of T-Mobile US Inc on Smartkarma
Independent analyst coverage on Smartkarma for T-Mobile US Inc has been positive, with recent reports from Baptista Research reflecting a bullish sentiment towards the company’s performance and strategic initiatives. In the report titled “T-Mobile US Inc.: The Metronet Acquisition,” Baptista Research highlights T-Mobile’s strong second-quarter performance, emphasizing achievements in customer experience and network expansion. The research aims to evaluate various factors influencing the company’s future stock price, including a Discounted Cash Flow (DCF) valuation.
Another report by Baptista Research, “T-Mobile US: Is The 5G Home Internet (FWA) Expansion Giving It An Edge Over Competitors? – Major Drivers,” focuses on T-Mobile’s impressive Q1 2024 earnings and consistent growth in postpaid phone net additions. The analysis underscores T-Mobile’s strong network value proposition, as evidenced by growing postpaid phone gross adds and record-low churn rates. These reports suggest a positive outlook for T-Mobile US Inc amidst its continued growth and customer-oriented strategies.
A look at T Mobile Us Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, T-Mobile US Inc shows promising long-term potential. With a strong Momentum score of 5, the company is exhibiting excellent performance trends that are likely to continue in the future. This indicates a positive trajectory in terms of market sentiment and price movements.
In addition, T-Mobile US Inc also received a high Growth score of 4, showcasing its potential for future expansion and revenue growth. Coupled with a moderate Value score of 3, the company is seen as having a fair valuation considering its growth prospects. While the Dividend and Resilience scores are lower at 2, the overall outlook for T-Mobile US Inc remains optimistic, especially with its prominent position as one of the major wireless carriers in the US.
Summary: T-Mobile US, Inc. is a significant player in the US wireless carrier industry, formed through the merger of T-Mobile USA and MetroPCS.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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