T-Mobile Surpasses Goals, Sets New Ambitions, and Boosts Dividend

T-Mobile Surpasses 2021 Capital Markets Day Goals, Sets New Ambitions, Boosts Dividend & More - T-Mobile US (NASDAQ:TMUS), Invesco BuyBack Achievers ETF (NASDAQ:PKW)

T-Mobile increased its dividend by 35% and aims to reach 12M 5G broadband customers by 2028. T-Mobile US, Inc. TMUS shares are trading higher today. The company disclosed long-term goals, AI deals, and a dividend hike on Wednesday. T-Mobile revealed a three-year plan to drive growth. The strategy comprises expanding its AI-driven, digital-first approach, increasing market share in underpenetrated areas, boosting broadband growth, and exploring new revenue streams. The company exceeded its 2021 Capital Markets Day goals, including building a solid network in America, expanding market reach, and achieving $8 billion in synergies from the Sprint merger. Apart from this, T-Mobile plans to enhance its network leadership with advanced technologies like Massive MIMO, VoNR, and 5G Advanced, backed by its nationwide 5G standalone network. In a separate release, T-Mobile and OpenAI disclosed a transformative multi-year partnership aimed at revolutionizing customer experience. This collaboration merges T-Mobile's deep customer relationship skills with OpenAI's cutting-edge AI technology and R&D capabilities. T-Mobile CEO Mike Sievert said, "T-Mobile is a company on the move with tremendous opportunities in front of us to further extend our outperformance in customer growth and translate that into strong top and bottom-line growth that will enable a compelling capital return opportunity over the next few years," Also Read: T-Mobile Partners with NVIDIA, Ericsson, And Nokia to Pioneer AI-Driven Mobile Networks Outlook: T-Mobile expects service revenue between $75 billion and $76 billion and adjusted free cash flow of $18 billion-$19 billion in 2027. T-Mobile for Business (TFB) is anticipated to deliver double-digit growth, with overall service revenue projected to grow at a 5% CAGR from 2023 to 2027. The company now targets 12 million 5G broadband customers by 2028, significantly raising its previous goal of 7 to 8 million by 2025. The company projects core Adjusted EBITDA growth, targeting $38 billion to $39 billion in 2027, reflecting a 7% CAGR at the midpoint from 2023 and a $10 billion increase from 2023 at the high end of guidance. This growth is expected to be fueled by operational leverage and efficiencies from technology, AI, and digital innovation. Dividend Boost: T-Mobile disclosed that its Board of Directors has declared a cash dividend of $0.88 per share, reflecting a 35% increase from the previous quarter. The dividend will be payable on December 12, 2024, to stockholders of record as of November 27, 2024. Also, the company plans to allocate around $80 billion through 2027 for investments and shareholder returns, including up to $50 billion for dividends and share repurchases (in addition to the $25 billion already returned to shareholders). Apart from this, T-Mobile introduced T-Priority, the world's first 5G network slice dedicated to first responders, providing advanced connectivity solutions and unparalleled support for emergency situations. Investors can focus on the stock via The Communication Services Select Sector SPDR Fund XLCand Invesco BuyBack Achievers ETF PKW. Price Action: TMUS shares are up 1.04% at $198.73 at the last check Thursday. Photo by viewimage on Shutterstock Read Next: Apple iPhone 16 Selling At A 'Greater Rate Than Last Year,' Says T-Mobile CEO Amid Reports Of Lower Demand: 'People Are Buying Pros, They're Buying Maxs... They're Buying Up The Food Chain' Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

T-Mobile targets $10 billion EBITDA rise by 2027 By Investing.com

SAN FRANCISCO - T-Mobile US, Inc. (NASDAQ: NASDAQ:TMUS) outlined a comprehensive three-year growth strategy at its Capital Markets Day event, aiming to boost its financial metrics significantly by 2027. The company's senior leadership team presented plans to build upon its network, customer service, and digital transformation to drive profitable growth and shareholder returns. T-Mobile's strategy includes extending its network leadership through advanced technology deployments like Massive MIMO and the first broad deployment of 5G Advanced in the U.S. The company has also announced collaborations with NVIDIA (NASDAQ:NVDA), Ericsson (BS:ERICAs), and Nokia (HE:NOKIA) to create an AI-RAN Innovation Center, which will integrate AI and RAN innovations for enhanced network experiences. In customer experience, T-Mobile is leveraging AI and digital tools to transform interactions, aiming for digital completion of most customer activations and upgrades. A partnership with OpenAI will develop a predictive AI platform named IntentCX, which is expected to reduce customer contacts to Care by 75%, improving satisfaction and reducing operating costs. The company also plans to grow its core wireless business by capturing market share in underpenetrated segments. T-Mobile for Business is set to focus on small to mid-market companies and deliver advanced solutions to enterprise and government customers. In the broadband sector, T-Mobile aims to reach 12 million 5G broadband customers by 2028, with a fiber partnership expected to pass 12 to 15 million households by the end of 2030. The company anticipates an internal rate of return of around 20% from its fiber joint ventures. Financially, T-Mobile forecasts service revenue growth to accelerate at a compound annual growth rate (CAGR) of approximately 5% from 2023 to 2027, with expected service revenues of $75 to $76 billion in 2027. The company also projects a nearly $10 billion increase in annual Core Adjusted EBITDA by 2027, with a CAGR of about 7% from 2023 to 2027. Adjusted Free Cash Flow is expected to reach $18 to $19 billion in 2027, marking a CAGR of 8% from 2023 to 2027. To balance capital allocation, T-Mobile plans to maintain a 2.5 times leverage target and anticipates $9 to $10 billion in annual capital expenditures to fund network leadership. The company is also committed to stockholder returns through dividends and share repurchases. The Board of Directors has declared a cash dividend of $0.88 per share, payable on December 12, 2024, to stockholders of record as of November 27, 2024, representing a 35% increase from the previous quarter. This article is based on a press release statement from T-Mobile, which provides a detailed view of the company's financial aspirations and strategic initiatives for the coming years. In other recent news, T-Mobile has taken significant strides in AI and telecommunications. The company has partnered with NVIDIA, Ericsson, and Nokia to establish the AI-RAN Innovation Center in Bellevue, Washington, aiming to enhance 5G capabilities and customer experiences. In addition, T-Mobile and OpenAI have announced a multi-year partnership to develop an AI-based customer service platform, IntentCX, set for launch in 2025. T-Mobile has also retained its Buy rating from TD Cowen, which highlighted key areas for the company's upcoming Capital Markets Day event. KeyBanc Capital Markets expressed confidence in T-Mobile, raising its price target on the stock from $190 to $230, reflecting recent acquisitions. However, the company faced a $60 million fine by the Committee on Foreign Investment in the United States due to non-compliance during its acquisition of Sprint Corp. Despite this, T-Mobile reported a 4% increase in service revenues to approximately $16.4 billion, and a 9% rise in Adjusted EBITDA to nearly $8.1 billion. Peter Osvaldik, T-Mobile's CFO, has secured his position until 2026, with his compensation package tied to pre-established performance goals. These are among the recent developments for the company. T-Mobile US, Inc. (NASDAQ: TMUS) has been demonstrating a strong financial performance, as evidenced by its recent market data. With a market capitalization of $231.97 billion, the company is a prominent player in the Wireless Telecommunication Services industry. Its current P/E ratio stands at 24.53, which is considered low relative to its near-term earnings growth. This is further supported by a PEG ratio of 0.42, indicating potential for future earnings growth relative to the share price. InvestingPro Tips highlight T-Mobile's perfect Piotroski Score of 9, suggesting that the company's financials are healthy across the board. Moreover, analysts predict the company will remain profitable this year, which aligns with the company's own financial forecasts and growth strategy. T-Mobile's stock has been trading near its 52-week high, reflecting a large price uptick over the last six months, with a six-month price total return of 26.68% and a year-to-date price total return of 27.83%. For those interested in more in-depth analysis, InvestingPro offers additional tips on T-Mobile, which can be accessed at https://www.investing.com/pro/TMUS. With 10 more InvestingPro Tips available, investors can gain a comprehensive understanding of the company's financial health and market position.

T-Mobile Announces 3-Year AI Plan Analyst Says Could Mean 'Sizable Capital Returns To Shareholders' - NVIDIA (NASDAQ:NVDA), AT&T (NYSE:T)

The company guided to 2027 Service Revenue of $75-$76B billion and adjusted EBITDA of $38-$39B. T-Mobile US Inc TMUS shares were climbing on Thursday, after the company unveiled a three-year AI-focused plan. Here are some key takeaways from the company's Capital Markets Day in San Francisco. Scotiabank On T-Mobile US Analyst Maher Yaghi reiterated a Sector Outperform rating while raising the price target from $197.00 to $215.50. T-Mobile detailed its growth plans for the next three years, the financial output of which "looks impressive with continuation of leading wireless subscriber loading, service revenue growth and FCF growth compared to US peers," Yaghi said in a note. The plan is focused on improving customer experience, unlike many telecom companies that have made cost-cutting their main focus, he added. "We believe the expected 5% CAGR service revenue growth up to 2027 and the 8% Adj. FCF growth metrics, which do not include any of the pending acquisitions already announced, should support further stock upside," the analyst wrote. This should generate "sizable capital returns to shareholders," while still leaving the company with around $20 billion in cash "to further de-lever the balance sheet or undertake additional M&A," he further stated. Oppenheimer On T-Mobile US Analyst Timothy Horan maintained an Outperform rating while lifting the price target to $215. "The company has transformed to the leading wireless carrier in spectrum depth, network performance, growth, and FCF margins, and is taking the lead in GenAI on both networks and CX," Horan wrote in a note. The company aims to "reduce inbound calls by 75% and resolve 100% of upgrades and 50%-plus of activations digitally," he added. T-Mobile plans to use OpenAI for its upcoming IntentCX platform to increase customer engagement, the analyst stated. The company has also partnered with NVIDIA Corp NVDA to "accelerate the development of AI-RAN," he further wrote. Check out other analyst stock ratings. KeyBanc Capital Markets On T-Mobile US Analyst Brandon Nispel reaffirmed an Overweight rating and price target of $230. T-Mobile's 2027 guidance has "a number of upside levers from the contribution of Metronet, Lumos and US Cellular, plus the execution of 'Hero Projects' and growth in underpenetrated Small Markets and Rural, Business and now First Responders," Nispel said. T-Mobile has set targets that would make it "a larger Home Broadband provider by customer count" than both AT&T Inc T and Verizon Communications Inc. VZ, which highlights that the company is "not at a strategic disadvantage despite lower Fiber home passed targets," the analyst stated. Goldman Sachs On T-Mobile US Analyst James Schneider maintained a Buy rating and price target of $205. T-Mobile has "ambitious targets" for broadband growth" and announced both revenue and cost initiatives around AI, Schneider said. Management is guiding to 2027 Service Revenue of $75-$76 billion and adjusted EBITDA of $38-$39 billion, ahead of consensus of $74.2 billion and $37.9 billion, respectively, he added. While the company's financial guidance was "broadly in line with elevated expectations heading into the event," it was modestly disappointing for capital returns, the analyst stated. "We came away from the event with increased confidence in the sustainability of T-Mobile's growth trajectory, particularly with respect to its broadband initiatives," he further wrote. RBC Capital Markets On T-Mobile US Analyst Jonathan Atkin reiterated an Outperform rating and price target of $200. The company announced a new shareholder return program through 2027 worth $80 billion, Atkin said. It will use $10 billion to "fund all announced transaction, including USM, Lumos, Metronet, and spectrum payments," he stated. T-Mobile has allocated $50 billion for share buybacks and dividends, "with dividend per share growth in the double digits," the analyst stated. He added, however, that $20 billion has been set aside as "a buffer for acquisitions and deleveraging apart from buybacks." TMUS Price Action: Shares of T-Mobile US had risen by 1.80% to $200.22 at the time of publication on Thursday. Read More: * Apple iPhone 16 Selling At A 'Greater Rate Than Last Year,' Says T-Mobile CEO Amid Reports Of Lower Demand: 'People Are Buying Pros, They're Buying Maxs...They're Buying Up The Food Chain' Photo: Viewimage on Shutterstock Market News and Data brought to you by Benzinga APIs

T-Mobile boosts dividend by 35% to $0.88 per share By Investing.com

BELLEVUE, Wash. - T-Mobile US, Inc. (NASDAQ: NASDAQ:TMUS), a major player in the American telecommunications industry, has announced a significant increase in its quarterly dividend. The company's Board of Directors has declared a cash dividend of $0.88 per share on its common stock, marking a 35% rise from the previous quarter's dividend. This increase will be applied to the dividend payable on December 12, 2024, to shareholders of record at the close of business on November 27, 2024. The move by T-Mobile signals a substantial return of capital to shareholders and reflects the company's financial health and confidence in its continued performance. Dividends are a way for companies to distribute a portion of their earnings to shareholders, and an increase in the dividend amount can be indicative of a company's strong financial position and optimistic outlook. T-Mobile, known for its "Un-carrier" approach to mobile communications, has been at the forefront of deploying advanced network technologies, including an expansive 4G LTE network and a nationwide 5G network aimed at providing reliable connectivity across the United States. The company has consistently emphasized its commitment to customer service and innovation in the wireless industry. The telecommunications giant operates under its flagship brands, T-Mobile, Metro by T-Mobile, and Mint Mobile, and is headquartered in Bellevue, Washington. Its services are provided through its subsidiaries, underscoring its extensive presence in the American market. This dividend declaration is based on a press release statement from T-Mobile US, Inc. Such financial decisions are closely watched by investors and market analysts as they can influence the performance of a company's stock on the exchange. The increased dividend is set to be distributed in the final month of the year, aligning with the company's fiscal strategies and shareholder expectations. In other recent news, T-Mobile US, Inc. has announced ambitious financial targets, aiming for a nearly $10 billion increase in annual Core Adjusted EBITDA by 2027. The company plans to grow its core wireless business, targeting underpenetrated segments, and aims to reach 12 million 5G broadband customers by 2028. In a bid to enhance customer service, T-Mobile is partnering with OpenAI to develop a predictive AI platform named IntentCX. T-Mobile has also collaborated with NVIDIA (NASDAQ:NVDA), Ericsson (BS:ERICAs), and Nokia (HE:NOKIA) to establish the AI-RAN Innovation Center, aimed at integrating AI and RAN innovations for enhanced network experiences. The company has retained its Buy rating from TD Cowen, with KeyBanc Capital Markets raising its price target on the stock, reflecting recent acquisitions. However, T-Mobile faced a $60 million fine due to non-compliance during its acquisition of Sprint Corp. Despite this, the company reported a 4% increase in service revenues and a 9% rise in Adjusted EBITDA. These are the recent developments for T-Mobile. T-Mobile US, Inc. (NASDAQ: TMUS) has demonstrated a robust financial performance, as reflected in the recent announcement of a significant dividend increase. Delving into the InvestingPro data, the company's P/E Ratio stands at a compelling 24.53, with an adjusted figure of 22.53 for the last twelve months as of Q2 2024. This positions T-Mobile favorably, especially when considering its near-term earnings growth. Additionally, the company's PEG Ratio for the same period is 0.42, suggesting that the stock may be undervalued relative to its earnings growth potential. The company's market capitalization is a formidable $232.87 billion USD, underscoring its significant presence in the telecommunications sector. With a gross profit margin of 63.6% for the last twelve months as of Q2 2024, T-Mobile's operational efficiency is evident. Moreover, the company has experienced a revenue growth of 3.0% in Q2 2024, which is a testament to its sustained growth trajectory. InvestingPro Tips indicate that T-Mobile is a prominent player in the Wireless Telecommunication Services industry, which aligns with its "Un-carrier" approach and continued network advancements. The company's stock has been trading near its 52-week high, with a price of 96.32% of that peak. This is indicative of the positive sentiment surrounding T-Mobile's market performance and investor confidence. Additionally, with a perfect Piotroski Score of 9, the company's financial health is further affirmed. For investors looking for more insights, there are additional InvestingPro Tips available, including analysis on the company's low price volatility and its performance over the last decade. To explore these further, visit https://www.investing.com/pro/TMUS for a comprehensive view of T-Mobile's financial metrics and market position.