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Compared to Estimates, T-Mobile (TMUS) Q3 Earnings: A Look at Key Metrics

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T-Mobile (TMUS - Free Report) reported $19.25 billion in revenue for the quarter ended September 2023, representing a year-over-year decline of 1.2%. EPS of $1.82 for the same period compares to $0.40 a year ago.

The reported revenue represents a surprise of -0.49% over the Zacks Consensus Estimate of $19.35 billion. With the consensus EPS estimate being $1.75, the EPS surprise was +4.00%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how T-Mobile performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Prepaid churn: 2.8% versus 2.9% estimated by six analysts on average.
  • Postpaid phone churn: 0.9% compared to the 0.9% average estimate based on six analysts.
  • Total High Speed Internet net customer additions: 557 thousand versus 509.1 thousand estimated by six analysts on average.
  • Net customer additions - Total postpaid customers: 1,226 thousand compared to the 1,446.42 thousand average estimate based on six analysts.
  • Postpaid phone ARPU: $48.93 versus the six-analyst average estimate of $48.90.
  • Prepaid ARPU: $37.98 compared to the $38.01 average estimate based on six analysts.
  • Total service revenues: $15.91 billion compared to the $15.75 billion average estimate based on six analysts. The reported number represents a change of +3.6% year over year.
  • Equipment revenues: $3.08 billion versus the six-analyst average estimate of $3.40 billion. The reported number represents a year-over-year change of -13.2%.
  • Revenue- Other revenues: $262 million versus the six-analyst average estimate of $269.54 million. The reported number represents a year-over-year change of +0.4%.
  • Revenues- Prepaid revenues: $2.47 billion compared to the $2.45 billion average estimate based on six analysts. The reported number represents a change of -0.4% year over year.
  • Revenues- Postpaid revenues: $12.29 billion versus $12.19 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +6.4% change.
  • Revenues- Wholesale and other service revenues: $1.15 billion compared to the $1.10 billion average estimate based on five analysts. The reported number represents a change of -13.2% year over year.
View all Key Company Metrics for T-Mobile here>>>

Shares of T-Mobile have returned +0.4% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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