what happened
Shares of mobile provider T-Mobile USA (NASDAQ: TMUS) fell nearly 5% in early trading on Friday, despite earnings expectations in the company’s Friday afternoon report. As of 11:40 a.m. EST, T-Mobile shares compared their losses to a drop of just 3%.
Analysts had predicted that the telecom giant would earn $ 0.51 per share on $ 19.9 billion in the fourth quarter of 2020. It appears that earnings were $ 0.60 and sales were $ 20.3 billion.
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Approximately
Despite expectations, however, T-Mobile’s earnings declined significantly in the fourth quarter – by 31%, while revenue climbed by 61%. The dramatic disconnection was due to higher costs of integrating Sprint into the business, but greater revenue from the acquisition of Sprint.
For the full fiscal year 2020, T-Mobile recorded revenue of $ 68.4 billion and net revenue of $ 3.1 billion (and $ 3 billion in free cash flow). At the end of the year, T-Mobile noted that it also had its best year ever for adding customers – 5.6 million new customers – one factor that led CEO Mike Sievert to say: ‘ 2020 was simply our best year yet. ‘
Now what
Of course, 2020 is not what has upset investors. That is why in 2021 the share is falling. T-Mobile said yesterday that a ‘net co-payment of net customers’ this year ranges from just 4 million to 4.7 million – compared to the 5 million additions that Wall Street predicted. The company is also looking for adjusted earnings before interest, tax, depreciation and amortization (EBITDA) which will be between $ 26.5 billion and $ 27 billion, bringing the total forecast area under the $ 27.1 billion consensus analyst forecast farm.
It’s the fact that T-Mobile missed the lead, so it seems to weigh in on the stock today.