T-Mobile Stock Pops as Fourth Quarter Handily Tops Estimates

T-Mobile US (TMUS) shares surged Wednesday morning after the telecommunications giant reported fourth-quarter results that handily topped analyst estimates. The company's strong performance was driven by robust customer growth, revenue expansion, and operational efficiencies. Here's a closer look at T-Mobile's impressive quarter and what it means for investors.



T-Mobile reported quarterly earnings of $2.57 per share, beating the analyst consensus estimate of $2.29. Revenue came in at $21.9 billion, also surpassing the predicted $21.3 billion. This marked a 6.8% increase year-over-year, with service revenue climbing to $16.9 billion, reflecting a 6% increase, and postpaid service revenue rising 8% to $13.5 billion.



The company's customer growth was particularly impressive, with T-Mobile adding 903,000 postpaid phone subscribers in the quarter, outpacing Verizon at 568,000 connections and AT&T at 482,000 connections. This strong customer growth was driven by T-Mobile's "Un-carrier" initiatives, which focus on removing common customer pain points and offering innovative services. The company also recorded its lowest full-year postpaid phone churn rate and its third year of at least 3 million postpaid phone net additions.

T-Mobile's net income soared 48% to $2.98 billion due to improved service revenue and cost efficiencies. Core adjusted EBITDA grew by 10% to $7.9 billion, reinforcing the company's profitability and fiscal health.

Looking ahead, T-Mobile expects to add another 5.5 million to 6.0 million postpaid net customer additions in 2025, with a core adjusted EBITDA of $33.1 billion to $33.6 billion. The company's guidance reflects its confidence in its ongoing strategic initiatives and the sustainability of its strong performance.

T-Mobile's impressive fourth-quarter results and positive outlook have investors excited about the company's prospects. With its aggressive customer growth strategy, operational efficiencies, and strategic acquisitions, T-Mobile is well-positioned to continue its strong performance in the coming years. As an investor, it's essential to stay informed about the latest developments in the telecommunications industry and consider adding T-Mobile to your portfolio.

In conclusion, T-Mobile's fourth-quarter results handily topped analyst estimates, driven by robust customer growth, revenue expansion, and operational efficiencies. The company's strong performance and positive outlook make it an attractive investment opportunity for investors looking to capitalize on the growing demand for wireless services and the expanding telecommunications market.