Core Insights - T-Mobile is undergoing significant changes, including leadership transition and new customer policies, which may impact customer experience and company operations [1][2] Leadership Changes - Mike Sievert will step down as CEO effective November 1, with Srini Gopalan, the current COO, set to succeed him [1] Policy Changes - T-Mobile has implemented a closure of a discount loophole that allowed credit card customers to receive a $5 autopay discount, effective October 24 [3][5] - Customers who make early payments with a credit card will lose their discount for that billing cycle [5] - The company plans to make customers fully reliant on its T-Life app for managing upgrades, new lines, and account activations by January [7] Financial Adjustments - T-Mobile is increasing its late fee from $7 to $10 or 5% of the past due balance, whichever is higher, starting November 1 [7] - The company is preparing to phase out its LTE service over the next two years [7] Service Changes - T-Mobile will accept damaged devices as trade-ins for promotions, but at a reduced value compared to undamaged devices [7] - The JUMP! On Demand program will be retired on December 1 [7] Industry Context - Credit card processing fees for businesses have risen significantly, with swipe fees for Visa and Mastercard totaling $111.2 billion in 2024, up from $100 billion in 2023, marking an increase of over 10% [6]

Core Insights - T-Mobile US, Inc. (NASDAQ: TMUS) has shown robust fundamentals and raised its full-year guidance, indicating strong performance expectations moving forward [1] Company Analysis - The coverage on T-Mobile was initiated at the end of August, highlighting the company's positive outlook and financial health [1] - The company operates within the tech sector, which is a focus area for investment analysis [1] Analyst Background - The analyst has a Bachelor of Commerce Degree with Distinction, majoring in Finance, and is a lifetime member of the Beta Gamma Sigma International Business Honor Society, emphasizing a strong educational background [1] - Core values of the analyst include Excellence, Integrity, Transparency, and Respect, which are deemed essential for long-term success in investment analysis [1]

Core Insights - T-Mobile US Inc. raised its full-year customer growth forecast after exceeding subscriber addition expectations in Q3, driven by bundled mobile and streaming plans [1] - The company added 1.01 million postpaid phone customers in the quarter, marking the highest total for this period in over a decade [1] Customer Growth Forecast - T-Mobile now anticipates full-year postpaid net customer additions of 7.2 million to 7.4 million, an increase from the previous estimate of 6.1 million to 6.4 million [2] - The guidance for core adjusted EBITDA has also been raised to between $33.70 billion and $33.90 billion, compared to the earlier forecast of $33.3 billion to $33.7 billion [2] Financial Performance - For the quarter ending September 30, revenue increased by 8.9% year-over-year to $21.96 billion, slightly below expectations of $21.98 billion [3] - Adjusted core profit rose by 5.3% to $8.68 billion, surpassing the consensus estimate of $8.62 billion [3]

Core Insights - T-Mobile and AT&T are engaged in a competitive pricing dispute, with T-Mobile's incoming CEO Srini Gopalan suggesting AT&T's criticisms stem from pressure they are experiencing [1] - T-Mobile's Q3 revenue increased by 8.9% year-over-year to $21.96 billion, surpassing estimates, while adjusted earnings per share fell by 7.7% to $2.41, slightly exceeding expectations [2] - T-Mobile raised its full-year outlook for postpaid net customer additions to 7.2 million to 7.4 million, although this is below Wall Street's estimate of approximately 7.5 million [3] Financial Performance - The company reported 3.3 million postpaid phone additions and 130,000 fiber additions, both exceeding previous guidance but falling short of consensus estimates [4] - T-Mobile increased its core adjusted EBITDA guidance to $33.7 billion to $33.9 billion, which is still below the $34 billion expected by analysts [4] - Capital spending forecast was raised to $10 billion, which analysts believe could pressure cash flow [5] Market Position - T-Mobile's stock has remained flat year-to-date and declined by 3% on Thursday, reflecting investor concerns about rising costs and profit trends [2] - In contrast, AT&T's stock has risen by 8% in 2025, while the S&P 500 has gained 15% [5] - T-Mobile emphasized its role as an industry disruptor, focusing on transparency and customer satisfaction rather than engaging in rivalry [5] Customer Growth - T-Mobile achieved 1 million postpaid phone net customer additions in Q3, marking its best performance in over a decade [6] - AT&T reported a mixed Q3, missing earnings and revenue estimates but adding 405,000 new mobile phone customers [6]

Core Insights - T-Mobile US reported third-quarter earnings that slightly exceeded consensus estimates, with a revenue increase of 4% year-over-year to $21.95 billion, while adjusted earnings per share fell 7% to $2.41 due to an impairment expense [2][3]. Financial Performance - Adjusted earnings per share for Q3 were $2.41, down from the previous year, while revenue rose to $21.95 billion [2]. - Analysts had expected earnings of $2.40 per share on revenue of $21.91 billion, indicating a slight outperformance in revenue but a marginal miss in earnings [2]. Subscriber Growth - T-Mobile added over one million postpaid phone subscribers, surpassing estimates of 841,000, and outpacing AT&T, which added 405,000 [3]. - The company also gained 506,000 wireless high-speed internet subscribers, bringing its total 5G broadband customers to 7.955 million as of September 30 [3]. Stock Market Reaction - Following the earnings report, T-Mobile's stock decreased nearly 1% to around $225, despite a 3% increase in shares leading up to the report [4]. - Prior to the earnings announcement, T-Mobile shares had fallen to their lowest level since late January [4]. Capital Expenditure - Capital spending in Q3 increased by 35% to $2.6 billion, and the company raised its 2025 capital spending estimate to $10 billion from $9.5 billion [5]. Leadership Changes - T-Mobile announced that Chief Operating Officer Srini Gopalan will become the next CEO effective November 1, succeeding Mike Sievert [5]. Stock Ratings - T-Mobile's stock holds an Accumulation/Distribution Rating of D, indicating institutional selling over the past 13 weeks [6]. - The stock has an IBD Composite Rating of 57 out of a possible 99, reflecting a blend of key fundamental and technical metrics [6].

Core Insights - T-Mobile US, Inc. is enhancing its wireless connectivity through a partnership with SpaceX, focusing on satellite-to-cellular services to maintain industry leadership [1][2][3] Group 1: Strategic Initiatives - The partnership with SpaceX aims to eliminate dead zones and provide a competitive edge akin to T-Mobile's dominance in 5G [2] - Incoming CEO Srini Gopalan emphasized the innovative technology of satellite communication, positioning T-Mobile to be 2 to 3 years ahead of competitors as satellite technology evolves [3] Group 2: Financial Performance - T-Mobile reported record customer results, including the best-ever postpaid account growth and over 1 million postpaid phone net additions during a strong quarter [4] - The company raised its full-year guidance for postpaid net customer additions to between 7.2 million and 7.4 million, reflecting strong confidence in its growth trajectory [5] - Quarterly earnings were reported at $2.41 per share, surpassing analyst expectations, with revenue of $21.96 billion, also exceeding estimates [6] Group 3: Market Performance - Despite positive developments, T-Mobile's stock closed 3.26% lower at $219.99, with a year-to-date increase of 0.21% but a decline of 5.81% over the year [7]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. T-Mobile US, Inc. (NASDAQ:TMUS) stock dropped slightly after it released its third-quarter results on Thursday. Earnings Detail T-Mobile reported quarterly earnings of $2.41 per share, which beat the analyst consensus estimate of $2.39. Quarterly revenue came in at $21.96 billion, which exceeded the Street estimate of $21.92 billion and is up from the revenue of $20.16 billion reported for the same period ...

Core Insights - The company has been a growth leader for 13 years and achieved its highest number of new customers in the latest quarter [2] - Service revenue reached $18.24 billion, reflecting a 9% growth, exceeding Bloomberg Consensus estimates of $18.16 billion [4] - The company reported a 6% EBITDA growth and a cash conversion rate of 26%, the highest in the industry [3][10] Financial Performance - Total revenue was $21.96 billion, slightly below the expected $21.98 billion, indicating minor concerns despite overall strong performance [5] - Average revenue per user (ARPU) increased by 1.8% this year, with a 2% guidance increase for future ARPU [7][8] Customer Acquisition and Competition - The company added 1 million postpaid phone customers while maintaining a 6% earnings growth, showcasing effective customer acquisition strategies [6] - The industry has seen a 50% growth in free cash flow over the last three years, indicating a competitive landscape that still delivers value to customers [7] Market Positioning - The company positions itself as the value leader, attracting new customers without diluting revenue from existing ones [8] - The launch of new devices, such as the iPhone, creates a favorable switching moment for customers, enhancing the company's competitive edge [11][12]

Core Insights - T-Mobile US, Inc. reported strong customer growth, adding over 1 million new phone subscribers, significantly exceeding Wall Street's forecast of around 828,000 [1][5] - Despite the strong subscriber growth, T-Mobile's earnings guidance has raised concerns among investors, as it did not meet expectations for a more substantial financial forecast [1][3] Subscriber Growth - The company added over 1 million postpaid phone subscribers, outperforming the expected addition of approximately 828,000 [5] - This strong performance in subscriber growth is contrasted by a core adjusted EBITDA of $8.68 billion, which only met consensus expectations [5] Financial Guidance - T-Mobile raised its guidance for postpaid net customer additions significantly, but the revision for core adjusted EBITDA was only slight, leading to disappointment among investors [5][6] - The disconnect between strong subscriber momentum and modest earnings outlook is a primary reason for anticipated negative stock reactions [6] Market Reaction - Following the third-quarter report, T-Mobile's shares fell by 4.16%, trading at $217.84 at the time of publication [6] - Analyst Michael Ng from Goldman Sachs maintained a Buy rating with a price forecast of $286, but anticipates that the stock will trade lower due to the earnings results and guidance update [2][3]

T-Mobile beat on EPS and Revenue but stock still sliding on lower than expected guidance. ...