Earnings Alerts

T Mobile Us Inc (TMUS) Earnings Exceed Estimates with Strong Customer Growth in 2025 Forecast

By January 29, 2025 No Comments
  • T-Mobile’s forecast for postpaid net customers in 2025 is between 5.50 million and 6.00 million, exceeding the previous estimate of 5.23 million.
  • Projected Core Adjusted EBITDA is set between $33.10 billion and $33.60 billion, slightly higher than the estimate of $33.39 billion.
  • Capital expenditure is estimated to be approximately $9.50 billion, closely aligned with the prior estimate of $9.52 billion.
  • Adjusted free cash flow is expected to range from $17.30 billion to $18.00 billion, exceeding the estimated $17.32 billion.
  • For the fourth quarter, earnings per share (EPS) reached $2.57, up from $1.67 year-over-year, and surpassed the estimated $2.29.
  • Quarterly revenue was $21.87 billion, marking a 6.8% increase year-over-year, and beating the estimate of $21.35 billion.
  • Service revenue grew by 5.5% year-over-year to $16.93 billion, slightly exceeding the expected $16.76 billion.
  • Total net customers increased by 2.04 million, representing a 25% rise year-over-year, outpacing the estimate of 1.63 million.
  • Postpaid net customers grew by 1.93 million, a 23% year-over-year increase, surpassing the estimate of 1.61 million.
  • Postpaid phone net customers were 903,000, down 3.3% year-over-year, but still above the estimate of 864,539.
  • Postpaid other net customers reached 1.03 million, a 62% year-over-year increase, surpassing the estimated 744,292.
  • Prepaid net customers increased by 103,000, a 94% rise year-over-year, exceeding the estimate of 43,092.
  • Adjusted EBITDA for the quarter was $7.92 billion, rising 9.6% year-over-year, slightly above the estimate of $7.86 billion.
  • Postpaid monthly ARPA was $146.28, indicating a 4.3% year-over-year increase, compared to the estimated $144.88.
  • Postpaid phone ARPU reached $49.73, above the estimated $49.29.
  • Postpaid phone churn rate was 0.92%, slightly lower than the previous year’s 0.96% and the estimate of 0.96%.
  • Prepaid ARPU was $35.49, a 5.5% decrease year-over-year, close to the estimate of $35.40.
  • Prepaid churn rate was 2.85%, marginally lower than both the previous year’s 2.86% and the estimate of 2.8%.
  • Capital expenditure amounted to $2.21 billion, a 39% increase year-over-year, slightly below the estimate of $2.29 billion.
  • Total customers at the end of the period were 129.53 million, an 8.2% increase year-over-year, surpassing the estimate of 128.65 million.

T Mobile Us Inc on Smartkarma

Analyst coverage of T-Mobile US Inc on Smartkarma has been positive, with research reports from Baptista Research shedding light on the company’s recent performance and strategic moves.

Baptista Research analysts have published insights on T-Mobile US Inc’s expansion of 5G & Advanced Network Capabilities, highlighting strong performance in the third quarter of 2024 despite external challenges. The report emphasizes significant increases in net additions and service revenues, showcasing the company’s robust business model and market strategy. Additionally, the research points out T-Mobile US’s record low churn rates, indicating strong customer loyalty and brand strength. Another report by Baptista Research delves into the Metronet Acquisition, praising the company’s operational execution and customer-focused approach that led to record customer growth and positive financial outcomes in the second quarter of 2024.


A look at T Mobile Us Inc Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth5
Resilience2
Momentum4
OVERALL SMART SCORE3.4

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

Looking at T-Mobile US Inc’s Smartkarma Smart Scores, the company seems to have a promising long-term outlook. With a high score in Growth and Momentum, T-Mobile is positioned well for future expansion and market performance. The company’s focus on growth opportunities and its current momentum in the market indicate positive prospects for investors.

T-Mobile US Inc, formed by the merger of T-Mobile USA and MetroPCS, is a major player among the four national wireless carriers in the US. While the company shows strengths in areas like Growth and Momentum, there are some areas where T-Mobile could potentially improve, such as in the Value and Resilience categories. Overall, T-Mobile’s balanced performance across different Smart Scores suggests a solid foundation for long-term success in the competitive telecommunications industry.


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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