T-Mobile Us Inc (NASDAQ:TMUS) stock rose 4.24% (As on October 24, 11:27:52 AM UTC-4, Source: Google Finance) after the company exceeded expectations for quarterly wireless subscriber additions as more customers chose its discounted plans that bundle streaming services like Netflix. The company’s strong performance in customer growth is largely driven by its high-speed 5G plans, which are often more affordable compared to those offered by AT&T and Verizon. The company added 865,000 postpaid phone customers in the third quarter, its highest for the period in a decade, surpassing FactSet estimates of 727,500 additions. The company also reported its lowest third-quarter postpaid phone churn rate in its history at 0.86%. T-Mobile now expects postpaid net customer additions between 5.6 million and 5.8 million for the year, up from a prior outlook of 5.4 million to 5.7 million. Free cash flow, a metric closely watched by investors to help determine dividend payouts, came in at $5.2 billion in the third quarter, a record high for T-Mobile, above the $4.65 billion estimated by Visible Alpha.

TMUS in the third quarter of FY 24 has reported the adjusted earnings per share of $2.61, beating the analysts’ estimates for the adjusted earnings per share of $2.43. The company had reported the adjusted revenue of $20.16 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $20.01 billion. T-Mobile’s service revenues grew 5% YoY to $16.7 billion, with postpaid service revenues increasing 8% to $13.3 billion. The company also reached a milestone of 6 million broadband customers during the quarter. Postpaid service revenues of $13.3 billion grew 8% year-over-year, best in industry growth. Net income of $3.1 billion grew 43% year-over-year, best in industry growth.

Additionally, in Q4 through October 18, 2024, the company returned an additional $891 million to stockholders. The remaining authorization for stock repurchases and quarterly cash dividends as of October 18, 2024 is $6.4 billion through December 31, 2024. The next dividend of $0.88 per share is payable on December 12, 2024.

The company boosted its full-year guidance across several key metrics. T-Mobile now expects postpaid net customer additions of 5.6 million to 5.8 million, up from its previous forecast of 5.4 million to 5.7 million. Core Adjusted EBITDA is projected to be between $31.6 billion and $31.8 billion, while adjusted free cash flow is anticipated to range from $16.7 billion to $17 billion.