NASDAQ$TMUS

T-Mobile Us Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

T-Mobile reported industry-leading customer growth and strong financial results, leading to raised 2021 guidance.

T-Mobile's Q1 2021 results were highlighted by industry-leading total net additions, postpaid net additions, and postpaid phone net additions. The company also reported strong financial results and raised 2021 guidance.

  • Total net additions of 1.4 million, best in industry.
  • Postpaid net additions of 1.2 million, best in industry.
  • Total revenues of $19.8 billion and service revenues of $14.2 billion.
  • Net income of $933 million, diluted earnings per share (“EPS”) of $0.74.

Headline financials

Total Revenue

$19.8B

Previous: $11.1B+77.8%
EPS (adj)

$0.74

Previous: $1.10-32.7%
Postpaid Net Customer Adds

1.2M

Previous: 452.0K+167.7%
Prepaid Net Customer Adds

151.0K

No prior period
Postpaid Phone Churn

1.0%

Previous: 0.9%+14.0%
Capital Expenditures

-$3.18B

Previous: $1.75B-281.6%
Free Cash Flow

-$2.25B

Previous: $732M-407.4%
Net Income

$933M

Previous: $951M-1.9%
Operating Income

$2.14B

Previous: $1.54B+39.0%
Gross Profit

-$82M

Previous: $6.95B-101.2%
Cash & Equivalents

$6.68B

Previous: $1.11B+500.4%
Total Assets

$203B

Previous: $87.2B+133.1%
Stock-Based Comp

$138M

Previous: $138M+0.0%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$19.8B

Q1 2021+77.8%vs Q1 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

T-Mobile · $10.3B total across 1 segment · Q1 2021

  • Postpaid Service Revenue
    $10.3B+74.6%

Forward guidance

T-Mobile raises 2021 outlook for postpaid net customer additions, Core Adjusted EBITDA, cash purchases of property and equipment, Merger-related costs, net cash provided by operating activities, and Free Cash Flow.

Tailwinds

  • Postpaid net customer additions are expected to be between 4.4 million and 4.9 million, an increase from prior guidance of 4.0 million to 4.7 million.
  • Core Adjusted EBITDA is expected to be between $22.8 billion and $23.2 billion, an increase from prior guidance of $22.6 billion to $23.1 billion.
  • Cash purchases of property and equipment, including capitalized interest are expected to be at the high end of the prior guidance range of $11.7 billion to $12.0 billion.
  • Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $13.2 billion and $13.6 billion, an increase from prior guidance of $13.0 billion to $13.5 billion.
  • Free Cash Flow, including payments for Merger-related costs, is expected to be between $5.1 billion and $5.5 billion, an increase from prior guidance of $4.9 billion to $5.4 billion.

Headwinds

  • Merger-related costs are expected to be between $2.7 billion and $3.0 billion before taxes, an increase from prior guidance of $2.5 billion to $3.0 billion as the company executes faster on merger integration.
  • These costs are excluded from Core Adjusted EBITDA but will impact Net income and cash flows.
  • We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense, stock-based compensation expense and Interest expense.
  • Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
  • Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+1.8%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+3.0%

Avg return

30 days after

62%

42 / 68 earnings

Positive

+43.9%

Q2 2012

Best reaction

-11.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+4.1%+0.3%
Q4 2025+5.1%+10.1%+9.0%
Q3 2025-4.0%-3.3%-7.9%
Q2 2025+1.7%+3.5%-3.4%
Q1 2025-11.2%-5.8%-7.4%
Q3 2024+6.6%+4.0%+8.8%
Q2 2024+6.7%+6.6%+13.3%
Q1 2024-0.1%-0.0%+1.1%
Q4 2023+0.1%-0.2%+1.4%
Q3 2023+1.3%+0.4%+5.6%
Q2 2023-0.2%-2.7%-5.5%
Q1 2023-3.0%-5.3%-8.9%
Q4 2022-1.6%-4.9%-5.0%
Q3 2022+7.2%+8.1%+7.2%
Q2 2022+5.8%+7.4%+6.8%
Q1 2022+5.9%+1.2%+7.3%
Q4 2021+10.3%+11.4%+12.5%
Q3 2021+5.2%+5.9%-4.7%
Q2 2021-0.8%-0.4%-4.6%
Q1 2021+2.0%+5.8%+8.3%
Q4 2020-3.2%-3.8%-3.6%
Q3 2020+6.5%+4.9%+13.6%
Q2 2020+6.7%+5.3%+5.9%
Q1 2020+7.1%+8.7%+13.7%
Q4 2019+4.5%+15.5%+7.4%
Q3 2019+0.2%+1.0%-3.2%
Q2 2019+4.5%+0.9%-5.1%
Q1 2019-0.6%-0.5%+5.4%
Q4 2018+2.2%+4.0%+5.5%
Q3 2018+5.6%+5.5%+5.8%
Q2 2018+3.6%+10.5%+10.1%
Q1 2018-5.9%-5.4%-7.9%
Q4 2017-4.6%-7.0%+5.1%
Q3 2017+3.0%+4.1%+1.5%
Q2 2017-0.4%+1.9%+2.6%
Q1 2017+4.1%+4.0%+4.9%
Q4 2016+0.7%+5.0%+2.4%
Q3 2016+6.1%+5.6%+16.2%
Q2 2016+2.8%+4.6%+2.2%
Q1 2016-3.6%
Q4 2015+0.5%
Q3 2015-5.0%
Q2 2015+9.8%
Q1 2015+1.6%
Q4 2014+3.1%
Q3 2014+2.6%
Q2 2014+8.0%
Q1 2014+9.3%
Q4 2013-6.1%
Q3 2013-1.1%
Q2 2013+5.1%
Q1 2013+1.4%
Q4 2012+3.5%
Q3 2012-3.6%
Q2 2012+43.9%
Q1 2012+1.0%
Q4 2011-1.4%
Q3 2011+0.8%
Q2 2011-9.3%
Q4 2010-9.3%
Q1 2010-0.8%
Q1 2011+1.0%
Q4 2008-1.4%
Q3 2010+7.4%
Q3 2009+7.4%
Q4 2009-7.1%
Q2 2010-7.1%
Q2 2009-7.1%

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