NASDAQ$TMUS

T-Mobile Us Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

T-Mobile delivered industry-leading customer and cash flow growth and raised 2022 guidance for the third consecutive quarter.

T-Mobile reported strong Q3 2022 results, leading the industry in postpaid and broadband customer growth and raising 2022 guidance for the third consecutive quarter. The company's differentiated growth strategy and industry-best year-over-year postpaid phone churn improvement drove the highest postpaid service revenue and cash flow growth in the industry.

  • Postpaid net account additions of 394 thousand, best in industry and highest in company history
  • Postpaid net customer additions of 1.6 million, more than AT&T and Verizon combined
  • Service revenues of $15.4 billion grew 4% year-over-year, including industry-leading Postpaid service revenue growth of 7%
  • Free Cash Flow of $2.1 billion grew 32% year-over-year, best growth in industry and raising guidance

Headline financials

Total Revenue

$19.5B

Previous: $19.6B-0.7%
EPS (adj)

$0.40

Previous: $0.55-27.3%
Postpaid Net Customer Adds

1.6M

Previous: 1.3M+25.2%
Prepaid Net Customer Adds

105.0K

Previous: 66.0K+59.1%
Postpaid Phone Churn

0.9%

Previous: 1.0%-8.3%
Prepaid Churn

2.9%

Previous: 2.9%-0.7%
Capital Expenditures

-$3.63B

Previous: -$2.94B-23.4%
Free Cash Flow

-$3.13B

Previous: -$2.25B-38.7%
Net Income

$508M

Previous: $691M-26.5%
Operating Income

$1.28B

Previous: $1.58B-19.1%
Gross Profit

-$760M

Previous: -$259M-193.4%
Cash & Equivalents

$6.89B

Previous: $4.06B+69.9%
Total Assets

$213B

Previous: $202B+5.6%
Stock-Based Comp

$150M

Previous: $131M+14.5%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$19.5B

Q3 2022-0.7%vs Q3 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

T-Mobile · $11.5B total across 1 segment · Q3 2022

  • Postpaid Service Revenue
    $11.5B+6.9%

Forward guidance

T-Mobile raised its 2022 guidance for postpaid net customer additions, Core Adjusted EBITDA, net cash provided by operating activities, cash purchases of property and equipment, and free cash flow.

Tailwinds

  • Postpaid net customer additions are expected to be between 6.2 million and 6.4 million, an increase from prior guidance of 6.0 million to 6.3 million.
  • Core Adjusted EBITDA is expected to be between $26.2 billion and $26.4 billion, an increase from prior guidance of $26.0 billion to $26.3 billion.
  • Net cash provided by operating activities is expected to be between $16.3 billion and $16.5 billion, an increase from prior guidance of $16.0 billion to $16.3 billion.
  • Cash purchases of property and equipment are expected to be between $13.7 billion to $13.9 billion, an increase from prior guidance of $13.5 billion to $13.7 billion, reflecting T-Mobile’s accelerated build-out of its nationwide 5G network and purchases of High Speed Internet routers.
  • Free Cash Flow is expected to be between $7.4 billion and $7.6 billion, an increase from prior guidance of $7.3 billion to $7.6 billion.

Headwinds

  • Merger-related costs are expected to be between $4.8 billion and $5.0 billion before taxes, an increase from prior guidance of $4.7 billion to $5.0 billion.
  • These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided from operating activities and Free Cash Flow.
  • T-Mobile is 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 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 2022.

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 2022

Historical avgQ3 2022

+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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