Back to top

Image: Bigstock

Compared to Estimates, T-Mobile (TMUS) Q4 Earnings: A Look at Key Metrics

Read MoreHide Full Article

For the quarter ended December 2023, T-Mobile (TMUS - Free Report) reported revenue of $20.48 billion, up 1% over the same period last year. EPS came in at $1.67, compared to $1.18 in the year-ago quarter.

The reported revenue represents a surprise of +3.99% over the Zacks Consensus Estimate of $19.69 billion. With the consensus EPS estimate being $1.90, the EPS surprise was -12.11%.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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:

  • Prepaid churn: 2.9% versus 2.9% estimated by six analysts on average.
  • Postpaid phone churn: 1% versus the six-analyst average estimate of 0.9%.
  • Net customer additions - Total postpaid customers - Postpaid phone customers: 934 thousand compared to the 917.5 thousand average estimate based on six analysts.
  • Net customer additions - Total postpaid customers: 1,570 thousand compared to the 1,677.04 thousand average estimate based on six analysts.
  • Total High Speed Internet net customer additions: 541 thousand compared to the 507.36 thousand average estimate based on six analysts.
  • Postpaid phone ARPU: $48.91 versus the six-analyst average estimate of $48.84.
  • Revenues- Postpaid revenues: $12.47 billion compared to the $12.53 billion average estimate based on six analysts. The reported number represents a change of +6.4% year over year.
  • Revenues- Prepaid revenues: $2.43 billion versus the six-analyst average estimate of $2.45 billion. The reported number represents a year-over-year change of -0.7%.
  • Revenue- Other revenues: $261 million versus the six-analyst average estimate of $312.01 million. The reported number represents a year-over-year change of -14.1%.
  • Total service revenues: $16.04 billion versus $16.07 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +3.4% change.
  • Equipment revenues: $4.17 billion versus the six-analyst average estimate of $3.32 billion. The reported number represents a year-over-year change of -6.2%.
  • Revenues- Wholesale and other service revenues: $1.14 billion compared to the $1.09 billion average estimate based on six analysts. The reported number represents a change of -15.3% year over year.
View all Key Company Metrics for T-Mobile here>>>

Shares of T-Mobile have returned +2.6% over the past month versus the Zacks S&P 500 composite's +2.5% 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.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


T-Mobile US, Inc. (TMUS) - free report >>

Published in