T-Mobile (NASDAQ: TMUS) reported Q3 EPS of $1.01, $0.05 better than the analyst estimate of $0.96. Revenue for the quarter came in at $11.1 billion versus the consensus estimate of $11.33 billion.

“Q3 2019 was another blockbuster quarter for T-Mobile! Once again we set new records, including our 26th quarter in a row with more than 1 million net additions. And the Un-carrier is leading the industry in postpaid phone net adds - again,” said John Legere, CEO of T-Mobile. “Our team has been hard at work deploying 600 MHz spectrum and we have accelerated our plans to launch a foundational layer of 5G nationwide later this year. On top of that, the tremendous benefits of our merger with Sprint are just as compelling today as when we announced the deal and we look forward to completing the remaining steps so the New T-Mobile can get started delivering the incredible benefits to American consumers!”

Strong Customer Growth

• 1.7 million total net additions in Q3 2019 - record 26th consecutive quarter of more than 1 million total net additions
• 1.1 million branded postpaid net additions in Q3 2019 - best in the industry
• 754,000 branded postpaid phone net additions in Q3 2019 - best in the industry
• 62,000 branded prepaid net additions in Q3 2019, up 27,000 YoY
• Record-low Q3 branded postpaid phone churn of 0.89% in Q3 2019, down 13 bps YoY

Record Q3 Financial Performance (all percentages year-over-year)

• Record Service revenues of $8.6 billion, up 6% in Q3 2019 with Branded postpaid revenues up 10%
• Record Q3 Total revenues of $11.1 billion, up 2% in Q3 2019
• Record Q3 Net income of $870 million, up 9% in Q3 2019
• Record Q3 Diluted earnings per share (“EPS”) of $1.01, up 9% in Q3 2019
• Record Q3 Adjusted EBITDA(1) of $3.4 billion, up 5% in Q3 2019
• Record Q3 Net cash provided by operating activities of $1.7 billion, up 91% in Q3 2019
• Record Q3 Free Cash Flow(1) of $1.1 billion, up 27% in Q3 2019

Taking Major Steps Towards Nationwide 5G

• Accelerated the planned launch of the first nationwide 5G network, utilizing 600 MHz spectrum, to this year, forming the foundational 5G coverage layer for New T-Mobile
• 600 MHz now reaching nearly 8,300 cities and towns in 48 states and Puerto Rico
• 4G LTE on 600 MHz now covers 200 million people and 1.4 million square miles
• More than 26 million 600 MHz compatible devices already on our network

Continued Strong Outlook for 2019

• Branded postpaid net additions of 4.1 to 4.3 million, up from prior guidance of 3.5 to 4.0 million
• Net income is not available on a forward-looking basis(2)
• Adjusted EBITDA target of $13.1 to $13.3 billion, which includes leasing revenues of $550 to $600 million, up at the midpoint from prior guidance of $12.9 to $13.3 billion(1)
• Cash purchases of property and equipment, excluding capitalized interest of approximately $450 million (up from prior guidance of $400 million), are expected to be $5.9 to $6.0 billion, up $200 to $300 million from the high end of the prior guidance range, reflecting the rapid rollout of 600 MHz spectrum, which sets the foundation for our accelerated plan to launch the first nationwide 5G network this year. Cash purchases of property and equipment, including capitalized interest, are expected to be $6.35 to $6.45 billion, up from the prior guidance of $5.8 to $6.1 billion
• Three-year compound annual growth rate (“CAGR”) from FY 2016 to FY 2019 for Net cash provided by operating activities, excluding payments for merger-related costs, is expected to be at 36% to 37%, an increase and narrowing from the prior target range of 33% to 35%
• Three-year CAGR from FY 2016 to FY 2019 for Free Cash Flow, excluding payments for merger-related costs, is unchanged at 46% to 48%(1)
• In Q4 2019, pre-close merger-related costs are expected to be $125 million to $150 million before taxes

For earnings history and earnings-related data on T-Mobile (TMUS) click here.