MW T-Mobile's stock climbs after fourth-quarter earnings beat and robust guidance

By James Rogers

T-Mobile 'delivered another monster Q4,' says CEO Mike Sievert

T-Mobile US Inc.'s stock was up 8.3% Wednesday after the cellphone carrier's fourth-quarter profit and revenue beat Wall Street estimates, boosted by strong net customer additions. The Bellevue, Wash.-based company also gave strong guidance.

The stock is on pace for its largest percentage increase since Feb. 3, 2022, when it rose 10.22%, Dow Jones Market Data show.

The company's profit of $2.57 a share beat the FactSet consensus of $2.29 a share. Total revenue was $21.872 billion. Analysts surveyed by FactSet were looking for revenue of $21.333 billion.

Related: AT&T's stock bucks S&P 500 weakness as subscriber growth shines

During the quarter, T-Mobile's $(TMUS)$ postpaid net customer additions were 1.9 million, above the FactSet consensus of 1.742 million. Postpaid net account additions in the quarter were 263,000 and postpaid phone net customer additions were 903,000.

T-Mobile's postpaid phone churn, a key metric that measures the company's ability to retain customers, was 0.92% during the fourth quarter. In a statement, T-Mobile said this equaled its lowest figure for fourth-quarter churn.

T-Mobile also gave strong guidance. For 2025, the company expects postpaid net customer additions between 5.5 million and 6 million, the company's highest-ever guidance range issued at the beginning of the year. The outlook is above the FactSet consensus of 5.44 million postpaid net customer additions.

Related: Verizon's stock rises after biggest gain in five years on key subscriber metric

The company also expects 2025 core adjusted earnings before interest, taxes, depreciation and amortization of between $33.1 billion and $33.6 billion, which is up 5% year over year at the midpoint.

Telecom rivals AT&T Inc. $(T)$ and Verizon Communications Inc. $(VZ)$ also reported better-than-expected subscriber numbers recently in an indication of the overall health of the wireless market.

T-Mobile shares are up 48.5% in the last 12 months, outpacing the S&P 500's SPX gain of 24.8%. AT&T shares have gained 39.7% in the last 12 months, while Verizon's stock has fallen 4.4%.

-James Rogers

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January 29, 2025 10:44 ET (15:44 GMT)

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