T-Mobile US Inc (TMUS) Q3 2024 Earnings: EPS of $2.61 Beats Estimates

T-Mobile's Revenue and Earnings

T-Mobile US Inc (TMUS) shares rose sharply in after-hours trading on Wednesday as the company reported better-than-expected earnings for the third quarter of fiscal 2024. The telecom giant posted an adjusted EPS of $2.61, beating the consensus estimate of $2.56 by 5 cents.

T-Mobile's revenue also surpassed expectations, climbing 2.4% year-over-year to $20.23 billion. The increase was primarily driven by strong growth in the company's postpaid phone segment, which added 883,000 net new customers during the quarter.

Growth in T-Mobile's Customer Base

T-Mobile's postpaid phone customer base has grown significantly over the past few quarters, thanks to the company's competitive pricing and attractive promotions. The company also benefited from the launch of its 5G network, which is now available in more than 260 million POPs (points of presence) across the country.

In addition to its postpaid phone business, T-Mobile also saw growth in its prepaid segment. The company added 407,000 net new prepaid customers during the quarter, bringing its total prepaid customer base to over 20 million.

T-Mobile's Financial Outlook

For the full year of 2024, T-Mobile expects to generate revenue between $82.0 billion and $83.0 billion. The company also forecasts adjusted EPS in the range of $9.80 to $10.00. These projections are slightly ahead of analysts' estimates.

T-Mobile's financial outlook reflects the company's confidence in its continued growth. The company is well-positioned to benefit from the ongoing shift towards 5G and the increasing demand for mobile data.

Conclusion

T-Mobile's strong financial performance in the third quarter of 2024 highlights the company's continued momentum in the wireless market. The company's growing customer base, robust financial outlook, and commitment to innovation position it for continued success in the coming years.