NASDAQ$TMUS

T-Mobile Us Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

T-Mobile delivered industry-leading growth in postpaid service revenues, postpaid customers, and cash flow.

T-Mobile reported strong Q3 2021 results, with industry-leading postpaid service revenues and customer growth. The company raised its 2021 guidance across the board, driven by its growth and synergy-backed model.

  • Postpaid net additions of 1.3 million, leading the industry.
  • Record-high service revenues of $14.7 billion, a 4% year-over-year increase.
  • Net income of $691 million, impacted by higher merger-related costs.
  • Free Cash Flow of $1.6 billion, more than 4x year-over-year growth.

Headline financials

Total Revenue

$19.6B

Previous: $19.3B+1.8%
EPS (adj)

$0.55

Previous: $1.00-45.0%
Postpaid Net Customer Adds

1.3M

Previous: 2.0M-34.3%
Prepaid Net Customer Adds

66.0K

Previous: 56.0K+17.9%
Postpaid Phone Churn

1.0%

Previous: 0.9%+6.7%
Prepaid Churn

2.9%

Previous: 2.9%+1.4%
Capital Expenditures

-$2.94B

Previous: -$3.22B+8.5%
Free Cash Flow

-$2.25B

Previous: -$1.96B-14.7%
Net Income

$691M

Previous: $1.25B-44.9%
Operating Income

$1.58B

Previous: $2.57B-38.2%
Gross Profit

-$259M

Previous: -$489M+47.0%
Cash & Equivalents

$4.06B

Previous: $6.57B-38.3%
Total Assets

$202B

Previous: $192B+5.0%
Stock-Based Comp

$131M

Previous: $161M-18.6%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$19.6B

Q3 2021+1.8%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

T-Mobile · $10.8B total across 1 segment · Q3 2021

  • Postpaid Service Revenue
    $10.8B+5.8%

Forward guidance

T-Mobile raised its 2021 outlook across the board for the third consecutive quarter.

Tailwinds

  • Postpaid net customer additions are expected to be between 5.1 million and 5.3 million.
  • Core Adjusted EBITDA is expected to be between $23.4 billion and $23.5 billion.
  • Cash purchases of property and equipment are expected to be between $12.1 billion to $12.3 billion.
  • Net cash provided by operating activities is expected to be between $13.9 billion and $14.0 billion.
  • Free Cash Flow is expected to be between $5.5 billion and $5.6 billion.

Headwinds

  • Merger-related costs are expected to be between $2.8 billion and $3.0 billion before taxes.
  • Net income is not able to be forecasted due to variability and difficulty in predicting certain items.
  • 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.
  • N/A

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 2021

Historical avgQ3 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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