T-Mobile Posts Mixed Q4 Results; Shares Pop 8%

Wireless network operator T-Mobile US, Inc. (NASDAQ: TMUS) has reported mixed results for the fourth quarter ended December 31, 2021, as earnings surpassed but revenues missed estimates.

Despite the mixed performance, shares of the company rose 7.9% to close at $118.22 in Wednesday’s extended trading session.

Revenue & Earnings

T- Mobile reported quarterly revenues of $20.79 billion, up 2.2% from the same quarter last year. However, the figure failed to surpass the consensus estimate of $21.09 billion. The increase in revenues can be attributed primarily to the 5.5% year-over-year rise witnessed in service revenues, which stood at $15 billion and accounted for 72% of the total revenues of the company.

The company’s earnings per share (EPS) for the quarter stood at $0.34, down 43.3% from the prior year. The figure, however, topped the consensus estimate of $0.18.

In other operating metrics, postpaid net account additions stood at 315,000 against 131,000 reported in the previous year’s quarter. Further, postpaid phone net customer additions stood at 844,000 during the quarter against 824,000 a year ago.

Total net customer additions for the company were 1.8 million for the quarter, compared to 1.7 million last year.

CEO’s Comments

The CEO of T-Mobile, Mike Sievert, said, “Our industry-leading year-end results – adding 1.2 million postpaid accounts and 5.5 million postpaid customers, extending Ultra Capacity 5G to 210 million people – show that the Un-carrier is experiencing the greatest growth momentum in wireless. And we’re poised to sustain that position into 2022 and beyond as we continue to execute on our winning playbook and consistently make investments that have enabled our success. With plenty of room to run, we’re in the best-ever position to continue delivering.”

Stock Rating

Consensus among analysts is a Strong Buy based on 10 Buys and 1 Hold. The average T-Mobile stock prediction of $160.91 implies 46.8% upside potential from current levels. Shares have declined 15.3% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into T-Mobile’s performance this quarter.

According to the tool, the T-Mobile website recorded a 5.82% monthly rise in global visits in December, compared to the same period last year. Further, year-to-date, the website traffic has increased 19.40%, compared to the previous year.

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