T-Mobile US (TMUS) is one of the best-performing S&P 500 stocks Wednesday after the wireless provider beat top- and bottom-line expectations for its fourth quarter and issued a strong outlook for the full fiscal year.
In the three months ending December 31, T-Mobile's revenue increased 6.8% year over year to $21.9 billion, boosted by 1.9 million postpaid net customer additions. Its earnings per share (EPS) surged 53.9% from the year-ago period to $2.57.
"By putting customers first, T-Mobile delivered another monster Q4 that punctuated an amazing growth year with best-in-class results across wireless and broadband," said CEO Mike Sievert in a statement. "In 2024, more new postpaid customers chose the Un-carrier than ever before, and we had our lowest ever full-year postpaid phone churn, leading to our third year of more than 3 million postpaid phone net additions."
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results were mixed compared with analysts' expectations. Wall Street was anticipating revenue of $21.3 billion and earnings of $2.29 per share, according to MarketWatch.
For all of 2025, T-Mobile said it expects postpaid net customer additions in the range of 5.5 million to 6 million, its "highest-ever guidance range" to start a year.
"Building on this incredible momentum, 2025 is poised to be even more exciting, and because of this, we're issuing the strongest start-of-year postpaid net additions guide in our history," Sievert said. "We've already hit the ground running on our ambitious plans to give customers the kind of new, transformative experiences no one else can, and we're just getting started."
Is T-Mobile stock a buy, sell or hold?
T-Mobile has performed well on the price charts, generating a 48% total return (price change plus dividends) over the past 12 months. This compares to the S&P 500's 26% gain. And Wall Street sees even more upside for the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for TMUS stock is $244.76, representing implied upside of over 11% to its January 28 close. Additionally, the consensus recommendation is Buy.
Financial services firm Bernstein is one of the more bullish outfits on TMUS stock with an Outperform rating (equivalent to a Buy) and a $265 price target.
"T-Mobile has transformed itself from a distant laggard in wireless to a Champion over the past decade, and its growth story is still unfolding," wrote Bernstein analyst Laurent Yoon in a December 9 note. "T-Mobile has captured a lion's share of the industry's net adds, outpacing the market by two times in subscriber growth over the past four years."
Yoon added that the company "continues to hold its position as a 'value' provider within an oligopoly of equals, and we expect it to sustain its lead in subscriber growth."
Related content
-
Rising AI Demand Stokes Undersea InvestmentsThe Kiplinger Letter As demand soars for AI, there’s a need to transport huge amounts of data across oceans. Tech giants have big plans for new submarine cables, including the longest ever.
-
Return to Your Home Country to Retire: Repatriation RetirementThey came to the U.S. to live and work, but they want to retire in the old country. Here's how to juggle the move back home.
-
How Much Does Being Rich Matter in Retirement?After a certain point, having more money in retirement won't make you any happier, new research shows. Instead, physical health, a sense of purpose, and a minimal amount of non-mortgage debt are more relevant.
-
The Three Biggest Fears Keeping Retirees Up at NightHere are the steps you can take to put those fears to rest and retire with confidence so you can relax and enjoy the life you've planned.
-
What Can a Donor-Advised Fund Do for You? (A Lot)DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
-
Estate Planning When You Have International AssetsEstate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
-
Microsoft Stock: Innovation Spurs Its 100,000% ReturnMicrosoft's ability to recognize the "next big thing" has allowed sales – and its share price – to grow exponentially over the years.
-
Three Essential Estate Planning Steps to Protect Your Nest EggAfter dedicating years to building your wealth and securing your future, make sure your assets are protected and your loved ones are provided for in the future.
-
Is Chasing the American Dream Ruining Your Financial Life?Too many people focus on visible affluence as a marker of success. Here's how to avoid succumbing to the pressure and driving yourself into debt.
-
Stock Market Today: Dow Sinks 715 Points as Inflation Unrest GrowsInflation worries are showing up in both hard and soft data.
