T-Mobile Surpasses Expectations with Stellar Q4 2024 Earnings

T-Mobile US posts impressive Q4 2024 results, with EPS of $2.57 beating estimates. Robust revenue growth and customer additions enhance its market position amid a competitive landscape.

Date: 29-01-2025

AI Rating: 8

Earnings Per Share (EPS): T-Mobile reported an EPS of $2.57, a significant increase of 54% year over year and above the analyst estimate of $2.29. This positive performance indicates strong profitability and could positively influence investor sentiment.

Revenue Growth: The revenue for the quarter reached $21.9 billion, exceeding the expected $21.3 billion and representing a 6.8% increase compared to the same quarter last year. Such growth reflects T-Mobile's strong operational performance and suggests healthy demand for its services.

Net Income: T-Mobile's net income surged to $2.98 billion, marking a 48% year-over-year increase thanks to improved service revenue and cost efficiencies, signaling strong financial health.

Postpaid Net Customer Additions: The company added 1.93 million postpaid net customers in Q4, showing its capacity for customer retention and attraction, which is critical for ongoing revenue growth.

T-Mobile's substantial share buyback and dividend distribution in 2024 further strengthen its shareholder value proposition. The company repurchased shares worth $11.1 billion and distributed $3.3 billion in cash dividends, indicating confidence in generating free cash flow.

For 2025, the management's positive projections for customer additions and EBITDA reinforce their growth outlook. The anticipated adjusted free cash flow between $17.3 billion and $18.0 billion reflects T-Mobile's ability to secure resources for investing in further expansion and returning value to shareholders.

Stocks: TMUS