NASDAQ$TMUS

T-Mobile Us Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported record financials and strong customer growth, beating increased guidance while balancing growth and profitability.

T-Mobile US, Inc. reported strong Q4 2019 results, including 1.9 million total net customer additions and 1.0 million branded postpaid phone net customer additions. The company also reported record service revenues of $8.7 billion and record Q4 Adjusted EBITDA of $3.2 billion. In December 2019, T-Mobile launched America’s first nationwide 5G network.

  • Total net additions of 1.9M.
  • Branded postpaid phone net additions of 1.0M.
  • Record service revenues of $8.7B.
  • Net income of $751M.

Headline financials

Total Revenue

$11.9B

Previous: $11.4B+3.8%
EPS (adj)

$0.87

Previous: $0.75+16.0%
Postpaid Net Customer Adds

1.3M

No prior period
Prepaid Net Customer Adds

77.0K

No prior period
Postpaid Phone Churn

1.0%

Previous: 1.0%+2.0%
Prepaid Churn

4.0%

Previous: 4.0%-0.5%
Capital Expenditures

$1.16B

Previous: $1.18B-2.3%
Free Cash Flow

$1.4B

Previous: -$230M+708.7%
Net Income

$751M

Previous: $640M+17.3%
Operating Income

$1.23B

Previous: $1.14B+8.5%
Gross Profit

$6.67B

Previous: $6.28B+6.2%
Cash & Equivalents

$1.53B

Previous: $1.2B+27.0%
Total Assets

$86.9B

Previous: $72.5B+19.9%
Stock-Based Comp

$129M

Previous: $100M+29.0%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$11.9B

Q4 2019+3.8%vs Q4 2018
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

T-Mobile · $5.82B total across 1 segment · Q4 2019

  • Postpaid Service Revenue
    $5.82B

Forward guidance

T-Mobile provided its standalone guidance for 2020, expecting postpaid net customer additions between 2.6 and 3.6 million and Adjusted EBITDA in the range of $13.7 to $14.0 billion.

Tailwinds

  • Postpaid net customer additions between 2.6 and 3.6 million
  • Adjusted EBITDA target of $13.7 to $14.0 billion, which includes leasing revenues of $450 to $550 million
  • Network expansion, including the continued deployment of our 600 MHz spectrum and 5G network
  • Net cash provided by operating activities, excluding payments for merger-related costs and any settlement of interest rate swaps, is expected to be in the range of $7.9 to $8.5 billion
  • Free Cash Flow, excluding payments for merger-related costs and any settlement of interest rate swaps, is expected to be in the range of $5.4 to $5.8 billion

Headwinds

  • Net income is not available on a forward-looking basis
  • Pre-close merger-related costs are expected to be $200 to $300 million before taxes in Q1 2020
  • Payments for merger-related costs
  • Settlement of interest rate swaps
  • Cash purchases of property and equipment will be heavily weighted to early in the year

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 Q4 2019

Historical avgQ4 2019

+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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