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Compared to Estimates, T-Mobile (TMUS) Q3 Earnings: A Look at Key Metrics

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T-Mobile (TMUS - Free Report) reported $20.16 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 4.7%. EPS of $2.61 for the same period compares to $1.82 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $19.87 billion, representing a surprise of +1.49%. The company delivered an EPS surprise of +10.13%, with the consensus EPS estimate being $2.37.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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:

  • Net customer additions - Total postpaid customers - Postpaid phone customers: 865 thousand versus 745.75 thousand estimated by five analysts on average.
  • Prepaid churn: 2.8% compared to the 2.8% average estimate based on five analysts.
  • Net customer additions - Total postpaid customers: 1.58 million versus the five-analyst average estimate of 1.45 million.
  • Total High Speed Internet net customer additions: 415 thousand versus the five-analyst average estimate of 411.13 thousand.
  • Prepaid ARPU: $35.81 versus $35.53 estimated by five analysts on average.
  • Postpaid phone ARPU: $49.79 versus the five-analyst average estimate of $49.03.
  • Total service revenues: $16.73 billion versus $16.59 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.
  • Equipment revenues: $3.21 billion compared to the $3.06 billion average estimate based on five analysts. The reported number represents a change of +4.3% year over year.
  • Revenue- Other revenues: $230 million versus $237.26 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -12.2% change.
  • Revenues- Prepaid revenues: $2.72 billion versus the five-analyst average estimate of $2.65 billion. The reported number represents a year-over-year change of +9.8%.
  • Revenues- Wholesale and other service revenues: $701 million compared to the $802.90 million average estimate based on five analysts. The reported number represents a change of -39.2% year over year.
  • Revenues- Postpaid revenues: $13.31 billion versus $13.14 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.3% change.
View all Key Company Metrics for T-Mobile here>>>

Shares of T-Mobile have returned +8.7% over the past month versus the Zacks S&P 500 composite's +2.7% 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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