T-Mobile's Q4 Earnings Beat Estimate on Solid Customer Growth

Core Insights - T-Mobile, US, Inc. (TMUS) reported strong fourth-quarter 2024 results, with both net income and revenues exceeding Zacks Consensus Estimates, driven by significant postpaid customer growth [1][3][4] Financial Performance - Net income for Q4 2024 was $2.98 billion or$2.57 per share, a 48% increase from $2.01 billion or$1.67 per share in Q4 2023, surpassing the consensus estimate of $2.17 [3] - Total revenues for Q4 2024 reached$21.87 billion, up from $20.47 billion in the same quarter last year, beating the consensus estimate of$21.17 billion [4] - For the full year 2024, TMUS reported net income of $11.3 billion or$9.66 per share, compared to $8.4 billion or$6.93 per share in 2023 [3] Revenue Segments - Total service revenues were $16.92 billion in Q4 2024, up from$16.04 billion year-over-year, driven by strong demand for postpaid services [5] - Postpaid services generated $13.5 billion in revenues, reflecting an 8.3$4.69 billion from $4.17 billion in the prior year, attributed to a higher average revenue per device sold [8] Customer Growth - T-Mobile added 1.9 million postpaid net customers and 263,000 postpaid net accounts in Q4 2024, marking the best performance in the industry [6] - Postpaid phone net customer additions were 903,000, with a churn rate of 0.92$5.54 billion, up from $4.85 billion in the prior year [11] - Adjusted free cash flow was$4.08 billion, down from $4.3 billion year-over-year [11] - As of December 31, 2024, TMUS had$5.4 billion in cash and cash equivalents and $72.7 billion in long-term debt [12] Future Outlook - For 2025, TMUS anticipates postpaid net customer additions between 5.5 million and 6 million [13] - Core adjusted EBITDA is projected to be between$33.1 billion and $33.6 billion [13] - The company expects cash from operating activities to be in the range of$26.8 billion to $27.5 billion [13]