NASDAQ$TMUS

T-Mobile Us Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

T-Mobile reported strong Q4 2020 results, marked by industry-leading customer growth and profitability.

T-Mobile's Q4 2020 results showcased industry-leading total net additions, postpaid net additions, and postpaid phone net additions. The company reported total revenues of $20.3 billion and a net income of $750 million.

  • Total net additions of 1.7 million, leading the industry.
  • Postpaid net additions of 1.6 million, also best in the industry.
  • Total revenues reached $20.3 billion.
  • Net income amounted to $750 million.

Headline financials

Total Revenue

$20.3B

Previous: $11.9B+71.2%
EPS (adj)

$0.60

Previous: $0.87-31.0%
Postpaid Net Customer Adds

1.6M

Previous: 1.3M+23.1%
Prepaid Net Customer Adds

84.0K

Previous: 77.0K+9.1%
Postpaid Phone Churn

1.0%

Previous: 1.0%+2.0%
Prepaid Churn

2.9%

Previous: 4.0%-26.4%
Capital Expenditures

$3.81B

Previous: $1.16B+229.0%
Free Cash Flow

-$333M

Previous: $1.4B-123.8%
Net Income

$750M

Previous: $751M-0.1%
Operating Income

$1.71B

Previous: $1.23B+38.7%
Gross Profit

$10.7B

Previous: $6.67B+60.4%
Cash & Equivalents

$10.4B

Previous: $1.53B+579.6%
Total Assets

$200B

Previous: $86.9B+130.3%
Stock-Based Comp

$136M

Previous: $129M+5.4%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$20.3B

Q4 2020+71.2%vs Q4 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

T-Mobile · $10.3B total across 1 segment · Q4 2020

  • Postpaid Service Revenue
    $10.3B+76.1%

Forward guidance

T-Mobile expects growth in postpaid customers, Core Adjusted EBITDA, net cash provided by operating activities, and Free Cash Flow in 2021.

Tailwinds

  • Postpaid net customer additions are expected to be between 4.0 million and 4.7 million.
  • Core Adjusted EBITDA is expected to be in the range of $22.6 billion to $23.1 billion.
  • Adjusted EBITDA of $26.5 billion to $27.0 billion
  • Net cash provided by operating activities is expected to be in the range of $13.0 billion to $13.5 billion.
  • Free Cash Flow is expected to be in the range of $4.9 billion to $5.4 billion.

Headwinds

  • Merger-related costs are expected to be $2.5 billion to $3.0 billion before taxes.
  • These costs are excluded from Core Adjusted EBITDA and Adjusted EBITDA but will impact Net income and cash flows.
  • Capital expenditures are expected to be between $11.7 billion and $12.0 billion.
  • Guidance does not assume any material net cash inflows from securitization.
  • We are not able to forecast Net income on a forward-looking basis without unreasonable efforts.

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 2020

Historical avgQ4 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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