NASDAQ$TMUS

T-Mobile Us Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

T-Mobile surpassed 100 million customers and raised financial guidance for the second half of 2020, driven by strong Q3 2020 results.

T-Mobile reported strong Q3 2020 results, crossing the 100 million customer milestone and leading the industry in customer growth. The company raised its second half 2020 guidance for profitability and cash flow due to these strong results and faster-than-expected merger synergies.

  • Achieved a record-high of 2,035,000 total net additions, leading the industry.
  • Reported a record-high of 1,979,000 postpaid net additions, also best in the industry.
  • Reached a record-high of 100.4 million total customers by the end of Q3 2020.
  • Increased total revenues to $19.3 billion and service revenues to $14.1 billion.

Headline financials

Total Revenue

$19.3B

Previous: $11.1B+74.2%
EPS (adj)

$1.00

Previous: $1.01-1.0%
Postpaid Net Customer Adds

2.0M

No prior period
Prepaid Net Customer Adds

56.0K

No prior period
Postpaid Phone Churn

0.9%

No prior period
Prepaid Churn

2.9%

No prior period
Capital Expenditures

-$3.22B

Previous: -$1.51B-112.5%
Free Cash Flow

-$1.96B

Previous: -$644M-205.0%
Net Income

$1.25B

Previous: $870M+44.0%
Operating Income

$2.57B

Previous: $1.47B+74.4%
Gross Profit

-$489M

Previous: -$218M-124.3%
Cash & Equivalents

$6.57B

Previous: $1.65B+297.5%
Total Assets

$192B

Previous: $86.1B+123.5%
Stock-Based Comp

$161M

Previous: $126M+27.8%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$19.3B

Q3 2020+74.2%vs Q3 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

T-Mobile · $10.2B total across 1 segment · Q3 2020

  • Postpaid Service Revenue
    $10.2B

Forward guidance

T-Mobile raised its second half 2020 outlook.

Tailwinds

  • Postpaid phone net customer additions are expected to be between 1.3 million and 1.4 million, including 600,000 to 700,000 in Q4 2020.
  • Adjusted EBITDA is expected to be in the range of $13.6 billion to $13.7 billion, up from prior guidance of $12.4 billion to $12.7 billion. The Adjusted EBITDA target includes leasing revenues of $2.5 billion to $2.6 billion, compared to prior guidance of $2.4 billion to $2.6 billion.
  • Cash purchases of property and equipment, including capitalized interest are expected to be between $6.7 billion and $6.9 billion, compared to prior guidance of $6.5 billion to $6.9 billion.
  • Net cash provided by operating activities, including payments for Merger-related costs, is expected to be in the range of $5.9 billion to $6.1 billion, up from prior guidance of $5.3 billion to $5.7 billion.
  • Free Cash Flow, including payments for Merger-related costs, is expected to be in the range of $700 million to $900 million, up from prior guidance of $300 million to $500 million.

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 Q3 2020

Historical avgQ3 2020

+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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