T-Mobile called in late Thursday for a so-so quarter, but don't tell that to Fearless Leader CEO Mike Siebert.
In fact, Siebert and his team believe T-Mobile has enough momentum with consumers to start considering higher prices when it makes sense.
T-Mobile offers “unprecedented” value, the often high-energy Mr. Siebert told Yahoo Finance Live. He reiterated the company's determination to be the lowest-cost mobile phone provider, even if it means raising prices.
Shares of the telecom giant fell more than 2% in after-hours trading as the company's revenue and net postpaid customer additions fell short of analysts' expectations.
Earnings were impacted by items that can be recorded as one-time expenses, but still impacted headline earnings and early investor reaction.
A T-Mobile spokesperson told Yahoo Finance, “There were several unique events during the quarter, including the stock adjustment issuance of SoftBank stock and accelerated depreciation, both of which had a cash impact on the business. “There was no such thing,” he told Yahoo Finance in an email.
T-Mobile issued 48.75 million shares of common stock to SoftBank late in the fourth quarter. The issuance reflects the achievement of certain conditions as part of the merger between T-Mobile and SoftBank-owned Sprint. However, the number of shares of the company increased due to the issuance, and diluted EPS decreased.
The company also expects adjusted operating profit growth to slow in 2024 compared to 2023.
T-Mobile's results were released this week as rival AT&T had a mixed quarter and Verizon posted better-than-expected results.
Siebert claims that T-Mobile remains in growth mode, adding 5.7 million net customers in 2023 and improving operating income by double-digit percentages, making it a top pick in the highly competitive telecommunications industry. is no small feat.
Siebert explained that the company's business should also benefit from the deployment of satellites as part of its partnership with SpaceX to provide services in rural areas.
The company also has about $16 billion in cash remaining from a previous share buyback plan. T-Mobile bought back $13.2 billion in stock in 2023.
Here are T-Mobile's quarterly trends:
Revenue summary
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Net sales: $20.48 billion, +1% YoY (estimated $19.68 billion)
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Adjusted EPS: +41.5% YoY to $1.67 vs. $1.91 expected.
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Net increase in deferred payment: Estimated 1.6 million vs. 1.72 million.
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Postpaid Churn: 0.96% vs. estimated 0.91%
What else caught our attention: 2024 guidance.
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Net postpaid customer additions are expected to be between 5 million and 5.5 million. In 2023, T-Mobile recorded a net customer increase of 5.7 million.
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Adjusted operating profit grew “approximately” 9% at the “midpoint.” Adjusted operating profit in 2023 increased 10% year over year.
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Average revenue per user (ARPU) is expected to increase by 2%.
Brian Sozzi I'm the executive editor of Yahoo Finance. Follow Sozzi on Twitter/X @BrianSozzi And even more linkedin. Have a tip about a deal, merger, activist situation, or more? Email brian.sozzi@yahoofinance.com.
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