T-Mobile (TMUS) Tops Q2 EPS by 16c, Revenues Miss; Raises Guidance

T-Mobile (NASDAQ: TMUS) reported Q2 EPS of $1.86, $0.16 better than the analyst estimate of $1.70. Revenue for the quarter came in at $19.2 billion versus the consensus estimate of $19.42 billion.

• Postpaid net account additions of 299 thousand, best in industry
• Postpaid net customer additions of 1.6 million, best in industry and raising guidance
• Postpaid phone net customer additions of 760 thousand, best in industry and best Q2 in eight years
• Postpaid phone churn of 0.77%, best in industry for the first time ever and a record low
• High Speed Internet net customer additions of 509 thousand, more than AT&T, Verizon, Comcast and Charter combined for the 5th consecutive quarter

GUIDANCE:

Raising 2023 Guidance

• Postpaid net customer additions are expected to be between 5.6 million and 5.9 million, an increase from prior guidance of 5.3 million to 5.7 million.
• Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $28.9 billion and $29.2 billion, an increase from prior guidance of $28.8 billion to $29.2 billion.
• Merger synergies are expected to be approximately $7.5 billion, an increase from prior guidance of $7.3 billion to $7.5 billion.
• Merger-related costs are expected to be approximately $1.0 billion before taxes. These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Adjusted Free Cash Flow.
• Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $18.0 billion and $18.3 billion, an increase from prior guidance of $17.9 billion to $18.3 billion.
• Cash purchases of property and equipment, including capitalized interest, are expected to be between $9.5 billion and $9.7 billion an increase from the prior guidance of $9.4 billion to $9.7 billion.
• Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $13.2 billion and $13.6 billion. Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.

For earnings history and earnings-related data on T-Mobile (TMUS) click here.

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