On October 23, 2024, T-Mobile US, Inc (TMUS) announced its third-quarter earnings report, highlighting robust growth across several key areas. T-Mobile achieved its lowest third-quarter churn rates in history and marked a significant milestone by reaching 6 million broadband customers. Based on these achievements, the company raised its 2024 guidance across all performance indicators, reinforcing its leading position in the telecommunications industry.
Before we dive in, we have a special offer! For a limited time, you can get 70% off Stock Target Advisor’s premium features. Claim your discount here!
Key Insights from T-Mobile’s Earnings Report:
T-Mobile delivered remarkable results in Q3 2024, driven by its focus on network quality, customer-centric strategies, and financial prudence. The key highlights include:
Postpaid Net Customer Additions: The company recorded 1.6 million net customer additions, which led the industry. Notably, the postpaid phone net customer additions reached 865,000, making this the highest third-quarter gain in a decade. This achievement was complemented by a record-low postpaid phone churn of 0.86%.
High-Speed Internet Growth: T-Mobile’s High-Speed Internet saw net customer additions of 415,000, surpassing competitors and culminating in a total broadband customer count of 6 million by the end of the quarter.
Financial Performance: The company reported service revenues of $16.7 billion, reflecting a 5% year-over-year increase. T-Mobile also saw an impressive 43% year-over-year growth in net income, reaching $3.1 billion, and reported diluted earnings per share (EPS) of $2.61.
Management Discussion and Analysis:
CEO Mike Sievert emphasized the company’s strategy of combining network excellence with customer value. He noted that the results reflect the company’s winning formula of best-in-class network, unmatched value, and innovative customer experiences. This strategy has not only propelled T-Mobile’s industry-leading customer growth but also translated into superior financial performance. Sievert reaffirmed the company’s confidence in its future, citing its “approximately $80 billion capacity for investments and stockholder returns through 2027.”
Is now the time to buy T-Mobile? Access our full analysis report here, it’s free.
Additionally, T-Mobile’s strong performance in network leadership continued to receive recognition. The company won the “best 5G availability in the world” award for the fourth consecutive year, further solidifying its position as the 5G leader in the United States.
Stock Target Advisor’s Analysis on T-Mobile US:
According to Stock Target Advisor, T-Mobile’s stock enjoys a “Slightly Bullish” rating. The average analyst target price is set at USD 210.64, and the company’s current stock price stands at USD 220.95. Over the past year, T-Mobile has experienced a capital gain of 56.71%, reflecting strong investor confidence. Analysts have highlighted several key strengths, including high market capitalization, low volatility, superior risk-adjusted returns, and positive cash flow. However, concerns such as the stock being priced high compared to peers and its high leverage ratio were also noted.
Conclusion:
T-Mobile US, Inc. delivered a stellar third-quarter performance in 2024, underscoring its commitment to customer-centric strategies and financial discipline. The company’s ability to achieve industry-leading growth in customer additions, service revenues, profitability, and cash flows indicates a strong trajectory.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
