T-Mobile Stock Jumps On Stellar Q4 Results, Strong Guidance: Retail Excitement Grows
CEO Mike Sievert said that in 2024, more new postpaid customers chose the Un-carrier than ever before, and the company had its lowest-ever full-year postpaid phone churn.
FollowBellevue, Washington-based T-Mobile US, Inc. (TMUS) stock jumped in Wednesday’s premarket trading after the company reported solid fiscal year 2024 fourth-quarter results and guided to a strong subscriber growth.
T-Mobile stock was among the top seven trending tickers on Stocktwits.
The telecom company reported fourth-quarter earnings per share (EPS) of $2.57, up 48% year-over-year (YoY). Total revenue climbed to $21.87 billion from $20.48 billion.
The results exceeded the consensus estimates for EPS and revenue of $2.29 and $21.33 billion, respectively.
Core adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 10% to $7.9 billion.
Services revenue rose 6% YoY to $16.9 billion, with post-paid service revenue at $13.5 billion.
Among the operating metrics, postpaid net account additions and postpaid net customer additions totaled 263,000 and 1.9 million, respectively. The company said these were industry-leading numbers. Postpaid phone net customer additions came in at 903,000, and postpaid phone churn was 0.92%.
T-Mobile generated an adjusted free cash flow of $4.1 billion in the fourth quarter.
Mike Sievert, CEO of T-Mobile, said, “By putting customers first, T-Mobile delivered another monster Q4 that punctuated an amazing growth year with best-in-class results across wireless and broadband.”
“In 2024, more new postpaid customers chose the Un-carrier than ever before, and we had our lowest ever full-year postpaid phone churn, leading to our third year of more than three million postpaid phone net additions.
The company guided postpaid net customer additions to be between 5.5 million and 6 million in 2025. The consensus estimate is less than half as much, according to FactSet, Reuters reported.
T-Mobile expects core adjusted EBITDA to range from $33.1 billion to $33.6 billion.
Peers AT&T (T) and Verizon, Inc. (VZ) also reported solid quarterly results and issued strong forward guidance.
Separately, a Bloomberg report said Apple is collaborating with T-Mobile and SpaceX to make satellite network service available on iPhones.
TMUS sentiment and message volume January 29, premarket as of 9:26 m ET | Source: Stocktwits
On Stocktwits, retail sentiment toward T-Mobile stock stayed ‘extremely bullish’ (93/100), with optimism increasing from a day ago. Message volume remained at ‘extremely high’ levels.
In the pre-market session, T-Mobile stock soared 7.24% to $237.14, marking the highest level since Dec. 9. The stock has added a little under 2% in January after rallying about 40% in 2024.
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