T-Mobile stock jumps 8.9% after strong Q4 earnings report

T-Mobile shines as its stock surged 8.9% following a strong fourth-quarter earnings report that exceeded expectations across the board. The telecom leader continues to outperform rivals AT&T and Verizon with impressive subscriber growth and robust revenue gains.

Date: 29-01-2025

AI Rating: 8

T-Mobile's Performance Summary
T-Mobile reported a strong fourth quarter, showcasing its ability to attract new customers and generate substantial revenue. The company's performance regarding various financial metrics indicates a thriving business model in a competitive landscape.

Earnings Per Share (EPS)
The earnings per share increased significantly from $1.67 to $2.57, outperforming the consensus estimate of $2.28. This suggests robust profitability and effective cost management, which could positively influence investor sentiment and stock demand.

Revenue Growth
T-Mobile's overall revenue rose 6.8% to $21.9 billion, surpassing expectations of $21.36 billion. This growth was driven by a 6% increase in service revenue, contributing to the overall positive outlook for the company's financial health.

Subscriber Growth
The company added 903,000 monthly paying phone subscribers, demonstrating strong demand for its premium 5G plans. Additionally, T-Mobile experienced a net addition of 428,000 high-speed internet customers, reflecting its expanding market presence.

Customer Retention
With postpaid phone churn remaining under 1%, T-Mobile showcases strong customer loyalty and retention, factors that are critical for long-term sustainable growth in the telecom sector.

Future Guidance
Looking ahead, T-Mobile is optimistic about customer additions, projecting between 5.5 million to 6 million new postpaid net customers in 2024. Their EBITDA outlook of $33.1 billion to $33.6 billion further emphasizes the company's growth trajectory.

Stocks: TMUS