T-Mobile Q3 Results Miss Revenue Estimates; Shares Rise 1.6%

Wireless network operator T-Mobile US, Inc. (TMUS) has reported weaker-than-expected results for the third quarter of 2021. Shares of the company gained 1.6% to close at $117.70 in the extended trading session on Tuesday.

T-Mobile reported quarterly revenues of $19.62 billion, up 1.8% from the prior year. The growth in revenues was primarily driven by a 4.1% rise witnessed in service revenues, which came in at $14.7 billion. However, the revenue figure failed to surpass the consensus estimate of $20.14 billion.

T-Mobile’s earnings of $0.55 per share registered a year-over-year decline of 45% from the prior year’s figure of $1 per share.

In other key operating metrics reported by the company, TMUS’ core adjusted EBITDA witnessed a year-over-over growth of 4.5% to $6 billion. Further, the company reported total net customer additions, postpaid phone net customer additions and postpaid other net customer additions of 1.3 million (up 35% year-over-year), 673,000 (up 2.3% year-over-year) and 586,000 (up 54.6% year-over-year), respectively, at the end of the quarter.

The company has also raised its guidance for 2021. It expects postpaid net customer additions to be between 5.1 million and 5.3 million, up from the prior guidance of 5 million to 5.3 million. Further, TMUS anticipates core adjusted EBITDA to be in the range of $23.4 billion to $23.5 billion against the prior guidance of $23 billion to $23.3 billion.

The CEO of T-Mobile, Mike Sievert, said, “With our Magenta business firing on all cylinders and our Sprint integration ahead of schedule, we are well positioned for the future — and poised to continue winning with assets and a formula for growth that is differentiated from the other wireless players. We just keep exceeding our own targets on growth, profit and synergies — and we have no plans to slow down now.” (See T-Mobile stock chart on TipRanks)

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Recently, J.P. Morgan analyst Philip Cusick reiterated a Buy rating on the stock with a price target of $175, which implies upside potential of 51.1% from current levels.

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 9 Buys, 2 Holds and 1 Sell. The average T-Mobile price target of $165 implies that the stock has upside potential of 42.5% from current levels. Shares have gained 4.2% over the past year.

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 24.47% monthly rise in global visits in September. Further, year-to-date, website traffic rose 28.16%.

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