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T-Mobile (TMUS) Up 12.7% Since Last Earnings Report: Can It Continue?
TMUST-Mobile(TMUS) ZACKS·2025-02-28 17:35

Core Viewpoint - T-Mobile has reported strong fourth-quarter 2024 earnings, exceeding estimates with significant customer growth and revenue increases, leading to a positive outlook for the company moving forward [2][3][4]. Financial Performance - T-Mobile's net income for Q4 2024 was 2.98billion,or2.98 billion, or 2.57 per share, marking a 48% increase year-over-year from 2.01billionor2.01 billion or 1.67 per share [3]. - Total revenues for Q4 2024 reached 21.87billion,upfrom21.87 billion, up from 20.47 billion in the same quarter last year, surpassing the consensus estimate of 21.17billion[4].−Forthefullyear2024,T−Mobilereportedtotalrevenuesof21.17 billion [4]. - For the full year 2024, T-Mobile reported total revenues of 81.4 billion, an increase from 78.55billionin2023[4].CustomerGrowth−T−Mobileadded1.9millionpostpaidnetcustomersinthequarter,thehighestintheindustry,withapostpaidphonechurnrateof0.9278.55 billion in 2023 [4]. Customer Growth - T-Mobile added 1.9 million postpaid net customers in the quarter, the highest in the industry, with a postpaid phone churn rate of 0.92% [6]. - The company reported postpaid average revenues per account increased to 146.28 from 140.23year−over−year[6].RevenueSegments−Servicerevenuestotaled140.23 year-over-year [6]. Revenue Segments - Service revenues totaled 16.92 billion, up from 16.04billionyear−over−year,drivenbystrongdemandforpostpaidservices[5].−Equipmentrevenueswere16.04 billion year-over-year, driven by strong demand for postpaid services [5]. - Equipment revenues were 4.69 billion, an increase from 4.17billioninthepreviousyear,attributedtoahigheraveragerevenueperdevicesold[8].CashFlowandLiquidity−T−Mobilegenerated4.17 billion in the previous year, attributed to a higher average revenue per device sold [8]. Cash Flow and Liquidity - T-Mobile generated 5.54 billion in cash from operating activities in Q4 2024, compared to 4.85billionintheprior−yearquarter[11].−AsofDecember31,2024,thecompanyhad4.85 billion in the prior-year quarter [11]. - As of December 31, 2024, the company had 5.4 billion in cash and cash equivalents, with long-term debt of 72.7billion[12].FutureOutlook−For2025,T−Mobileanticipatespostpaidnetcustomeradditionsbetween5.5millionand6million,withcoreadjustedEBITDAestimatedat72.7 billion [12]. Future Outlook - For 2025, T-Mobile anticipates postpaid net customer additions between 5.5 million and 6 million, with core adjusted EBITDA estimated at 33.1-33.6billion[13].−Thecompanyexpectsadjustedfreecashflowintherangeof33.6 billion [13]. - The company expects adjusted free cash flow in the range of 17.3-18billionandcapitalexpendituresaround18 billion and capital expenditures around 9.5 billion [13]. Industry Comparison - T-Mobile's performance is compared favorably against Verizon, which reported a revenue increase of 1.6% year-over-year, indicating T-Mobile's stronger growth trajectory in the wireless industry [17].