T-Mobile blows away Wall Street's Q4 earnings estimate by 50%; carrier's shares respond

T-Mobile blows away Wall Street's Q4 earnings estimate by 50%; carrier's shares respond
Yesterday, T-Mobile raised the resolution of its unlimited streaming video for T-Mobile One customers to 720p (HD) from 480p (DVD quality). That allows the innovative Un-carrier to match the quality of video that subscribers to the new Verizon Unlimited plan get to view. Today, T-Mobile announced its fourth quarter earnings revealing how companies that put the customer first and quickly respond to competitive threats, can be very successful in this industry.

From October through December, T-Mobile scored a net profit of $390 million, or 45 cents a share. That is a 32% hike from last year's fourth quarter profit of 34 cents a share, or $297 million. Fourth quarter revenue grew 23.4% to $10.18 billion for the period. Considering that Wall Street was expecting T-Mobile to report profits of 30 cents a share, it appears that T-Mobile topped expectations by a whopping 50%. Revenue also topped Wall Street estimates of $9.84 billion. For the quarter, T-Mobile added 2.1 million net new subscribers

The nation's third largest carrier had a strong fourth quarter as it reported 933,000 postpaid phone subscribers, the Holy Grail for wireless carriers. Postpaid phone churn for the quarter declined by 18 basis points year-over-year to 1.28% from 1.46%. For all of 2017, T-Mobile says that it will add 2.4 million to 3.4 million net branded postpaid subscribers. T-Mobile's own estimate for 2017 might be disappointing according to institutional trading house Jefferies, but it adds that T-Mobile is known to be conservative with its own forecasts. Jefferies analysts said that they don't believe that the restrained forecast for 2017 is due to competition from the just launched Verizon Unlimited plan.

For all of 2016, T-Mobile added 8.2 million net new subscribers. Of that amount, 3.3 million were postpaid phone accounts that were added last year. The carrier currently covers 314 million people with its 4G LTE network. By year end, that figure will be up to 320 million.


Investors seem to like what they hear. T-Mobile shares are up $1.10 or 1.81% to $62 in early Wall Street trading today.

source: T-Mobile

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12 Comments

2. Darkkracker

Posts: 255; Member since: Jun 11, 2016

TMobile rules! so glad I left ATT.

13. therealestmc

Posts: 679; Member since: Jul 23, 2012

tmobille sucks where I am at. ATT still the best for coverage in my area. I am keeping an eye on tmobile.

3. fyah_king unregistered

My stocks are soaring!!!!

4. Joosty

Posts: 471; Member since: Mar 14, 2013

My comment was deleted haha! Let me censor my comment Tmobile B!t@h!!!Ione111 #TeamMagenta

5. remixfa

Posts: 14605; Member since: Dec 19, 2008

there ya go. You know your doing good when VZW does everything they can to match you.

6. NexusPhan

Posts: 632; Member since: Jul 11, 2013

"T-Mobile One customers to 720p (HD) from 480p (DVD quality)" That is completely untrue. The old T-Mobile One limited the bitrate on videos to 1.5 Mpbs which generally allows 480P or better. With newer codecs out there, YouTube and Neflix (and others) have easily achieved 720P under the restrictions of BingeOn for the past year. After yesterday, T-Mobile One customers can opt-out of BingeOn entirely which allows resolution as high as content providers can provide, including 4K resolution videos. Do you people do any research whatsoever as you spew these articles out? This website is getting so bad....

7. djcody

Posts: 227; Member since: Apr 17, 2013

Is a true, you're just moron who can't read and listen. Was sad clearly that starts Feb 17

8. aegislash

Posts: 1475; Member since: Jan 27, 2015

Verizon CEO probably took a heart attack after seeing these reports.

9. MartyK

Posts: 1043; Member since: Apr 11, 2012

Now all T-Mobile have to do, is remove all those extra fees for the rest of their long time customers!

11. Acdc1a

Posts: 473; Member since: Jan 21, 2016

Good news! You can simply change your plan and take advantage of it...if it's a better deal to keep the taxes and fees you can keep them.

12. remixfa

Posts: 14605; Member since: Dec 19, 2008

I have an older plan. Wasn't going to switch to the new plans because I didn't like the binge on quality throttling. I may just switch now. Will only save me like 7 bucks, but hey, it's money.

10. Mreveryphone

Posts: 1816; Member since: Apr 22, 2014

Thank you tmobile... Stocks looking good...

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