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T-Mobile US (NASDAQ:TMUS) announced preliminary fourth-quarter results, which came in better than what analysts were expecting. As a result, T-Mobile stock trades about 1% in the green despite the 1%+ drop in the S&P 500 today.
T-Mobile said it added 1.84 million new postpaid customers in the fourth quarter to reach a record 6.4M for full-year 2022. Postpaid phone net customer additions were 927,000 in Q4 and 3.1 million for full-year 2022, somewhere in line with the Q4 consensus of 929,000. Postpaid phone churn of 0.92% was better as consensus was standing at 0.98%.
“We believe investors will react positively to the results, particularly given concerns around supply chain issues heading into the quarter. We reiterate our Buy rating (on CL) on T-Mobile and maintain our 12-month price target of $180 following the wireless carrier’s solid 4Q22 pre-announcement,” analysts commented.
Morgan Stanley analysts added:
“We believe the bar had been somewhat lowered in recent weeks given concerns around iPhone supply and expect shares to react positively to this result. The company did not provide any financials with the release, but we expect a modest margin tailwind from lower gross add activity in the quarter. TMUS remains our Top Pick in Telecom Services.”
