T-Mobile Analysts Increase Their Forecasts After Strong Earnings

T-Mobile US, Inc. TMUS reported better-than-expected third-quarter financial results and raised its FY24 guidance on Wednesday.

T-Mobile reported quarterly earnings of $2.61 per share, which beat the analyst consensus estimate of $2.41. Quarterly revenue came in at $20.16 billion which beat the analyst consensus estimate of $20.01 billion and is an increase over sales of $19.25 billion from the same period last year.

"Delivering another quarter of industry-leading results, including our best third-quarter postpaid phone net adds in a decade and record low third quarter churn, translated into outsized financial results and empowered us to raise our 2024 guidance yet again," said Mike Sievert, CEO of T-Mobile.

T-Mobile raised its 2024 guidance across the board and now expects between 5.6 million and 5.8 million postpaid net customer additions, core adjusted EBITDA of between $31.6 billion and $31.8 billion. The company sees net cash from operations of between $22 billion and $22.3 billion and adjusted free cash flow is projected in a range of $16.7 billion to $17 billion.

T-Mobile shares gained 0.9% to close at $220.95 on Wednesday.

These analysts made changes to their price targets on T-Mobile following earnings announcement.

• B of A Securities analyst David Barden maintained T-Mobile US with a Buy and raised the price target from $220 to $240.
• JP Morgan analyst Sebastiano Petti maintained T-Mobile US with an Overweight and raised the price target from $230 to $250.
• Barclays analyst Kannan Venkateshwar maintained the stock with an Overweight and raised the price target from $215 to $230.

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