T-Mobile US, Inc. Earnings Top Expectations As Customer Count Surges

T-Mobile US Inc. (NASDAQ:TMUS) early Tuesday [Feb 14, 2017 | 7:40am] posted better than expected fourth quarter earnings results, as it continued to add millions of new subscribers to its competitively-priced services.

Written by StockNews.com

The Bellevue, WA-based mobile phone service provider reported Q4 EPS of $0.45, which was a full $0.15 better than the Wall Street consensus estimate of $0.30.

Revenues rose... 23.4% from last year to $10.18 billion, also easily topping analysts’ view of $9.86 billion.

TMUS additionally noted that earnings before interest, taxes, and amortization (EBITDA) gained 12% from the year-ago period to $2.55 billion.

T-Mobile said total net customer additions were 2.1 million in the fourth quarter, upping its total customer count to 71.5 million. Q4 marked the 15th consecutive quarter in which the company saw over 1 million total net customer additions.

Looking ahead, T-Mobile forecast adding 2.4 to 3.4 million branded postpaid net additions in 2017. It also sees EBITDA between $10.4 and $10.8 billion, with cash capital expenditures of $4.8 to $5.1 billion.

The company commented via press release:

“These results are proof that doing right by customers is also good for shareholders. Not only are customers flocking to T-Mobile, but we’re also producing rock-solid financial results including 11% growth in service revenues, 23% in total revenues, 31% in net income and 12% in Adjusted EBITDA year-over-year in Q4,” said John Legere, President and CEO of T-Mobile. “The competition just doesn’t get that customers want to come first! That’s three years in a row that we’ve added more than 8 million customers and taken all of the postpaid phone growth in the industry. The Un-carrier revolution continues in 2017!”

...Year-to-date, TMUS has gained 5.89%, versus a 4.13% rise in the benchmark S&P 500 index during the same period.

TMUS currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #2 of 33 stocks in the Telecom – Domestic category.