T-Mobile (TMUS) slides on mixed earnings and outlook

Shares of T-Mobile (NASDAQ: TMUS) fell 2.3% in after-hours trading Thursday after the wireless network operator reported Q4 2023 results.

The company posted earnings per share (EPS) of $1.67, notably missing the consensus estimates of $1.91. Revenue came in at $20.48 billion, up 1% from last year and above the expected $19.68 billion.

T-Mobile generated $16.04 billion in service revenue, 3.4% more than in the same quarter last year, and just below the projected $16.05 billion.

The telecommunications company added 1.62 million net customers in the quarter, down 12% year-over-year, and short of the 1.72 million expected by analysts. The number of added postpaid net customers was 1.57 million, down 14% from last year, and missing the estimated 1.69 million.

Adjusted EBITDA was reported at $7.22 billion, 5.8% higher than in the year-ago period, while analysts were looking for $7.28 billion.

The postpaid monthly average revenue per account (ARPA) stood at $140.23 in Q4, 1.8% higher than in the year-ago quarter. Analysts expected $139.49.

The company expects to add between 5 million and 5.5 million postpaid net customers in 2024, compared to the consensus projection of 5.34 million.

Core adjusted EBITDA is anticipated to be in the range of $31.3 billion to $31.9 billion, versus the estimated $31.67 billion. Capital expenditure is projected to land between $8.6 billion and $9.4 billion in this fiscal year, compared with the $9.3 billion forecasted by analysts.

T-Mobile expects adjusted free cash flow to range between $16.3 billion and $16.9 billion in 2024.

“This was a historic year for T-Mobile, with record outcomes across nearly every metric and industry-leading customer results – including our highest share of postpaid phone net adds since the merger and best-in-class growth in service revenues, profitability and cash flow – all while effectively completing the largest, most successful telecom integration in the world,” said Mike Sievert, CEO of T-Mobile.

By Vahid Karaahmetovic

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