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T-Mobile (TMUS) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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For the quarter ended December 2022, T-Mobile (TMUS - Free Report) reported revenue of $20.27 billion, down 2.5% over the same period last year. EPS came in at $1.18, compared to $1.10 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $20.79 billion, representing a surprise of -2.48%. The company delivered an EPS surprise of +7.27%, with the consensus EPS estimate being $1.10.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how T-Mobile performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • ARPU-Prepaid: $38.29 versus the seven-analyst average estimate of $38.96.
  • ARPU-Postpaid phone: $48.86 versus the seven-analyst average estimate of $48.93.
  • Prepaid churn: 2.93% versus 2.91% estimated by seven analysts on average.
  • Net customer additions-Total postpaid customers-Postpaid phone customers: 927 thousand versus 926.94 thousand estimated by seven analysts on average.
  • Postpaid phone churn: 0.92% compared to the 0.96% average estimate based on seven analysts.
  • Net customer additions-Prepaid customers: 25 thousand versus 70.63 thousand estimated by six analysts on average.
  • Equipment revenues: $4.45 billion compared to the $4.90 billion average estimate based on eight analysts.
  • Total service revenues: $15.52 billion versus $15.61 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +3.7% change.
  • Revenue-Other revenues: $304 million versus the eight-analyst average estimate of $284.38 million.
  • Service revenues-Prepaid revenues: $2.45 billion compared to the $2.51 billion average estimate based on seven analysts. The reported number represents a change of -1% year over year.
  • Service revenues-Postpaid revenues: $11.73 billion compared to the $11.77 billion average estimate based on seven analysts. The reported number represents a change of +7% year over year.
  • Service revenues-Wholesale and other service revenues: $1.34 billion versus $1.32 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +37.9% change.

View all Key Company Metrics for T-Mobile here>>>

Shares of T-Mobile have returned +7.4% over the past month versus the Zacks S&P 500 composite's +6.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.


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