T-Mobile U.S. Inc. (NASDAQ: TMUS) published its earnings report for the fiscal fourth quarter on Thursday that topped Wall Street estimates. The company, however, reported higher expenses, including the cost of its merger with Sprint Corporation.
T-Mobile shares slid roughly 2.5% in after-hours trading on Thursday. The stock is now trading at £93 per share after recovering from a low of £54.30 per share in March 2020 when the COVID-19 crisis wreaked havoc on the global financial markets.
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T-Mobile’s Q4 financial results versus analysts’ estimates
T-Mobile reported £548 million of earnings in the fourth quarter that translates to 43.84 pence per share. In the same quarter last year, the American wireless network operator had earned a higher 63.57 pence per share.
In separate news from the United States, automaker Ford Motor also published its quarterly financial report on Thursday.
T-Mobile valued its revenue in the recent quarter at £14.83 billion versus the year-ago figure of £8.70 billion. The sharp increase in revenue, the U.S. firm added, helped offset the rise in expenses. Oppenheimer assigned a price target of £160 to T-Mobile’s stock in December.
According to FactSet, experts had forecast the company to post £14.54 billion of revenue in the fourth quarter. Their estimate for per-share earnings on a GAAP basis stood at a lower 37.26 pence. Net additions, as per T-Mobile, were 1.7 million in Q4 that it called the “best in the industry”.
T-Mobile’s guidance for fiscal 2021
The Bellevue-headquartered company reported 5.6 million net additions for the full financial year – the highest in 4 years. For fiscal 2021, T-Mobile forecasts post-paid net customer additions to fall in the range of 4 million to 4.7 million. For adjusted earnings before interests, taxes, depreciation, and amortisation (EBITDA), its estimate currently stands at up to £19.73 billion.
CEO Mike Sievert commented on the financial report on Thursday and said:
“These results show that we’re pulling way ahead of the pack on what matters – overall 5G network performance – and executing to stay ahead. And customers are noticing. 2020 was quite simply our best year yet, with our highest ever total post-paid net additions of 5.5 million.”
T-Mobile performed largely upbeat in the stock market last year with an annual gain of close to 75%. At the time of writing, it is valued at £118.44 billion and has a price to earnings ratio of 42.71.
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