T-Mobile Earnings: Growth Continues to Slow Despite Solid Customer Metrics

T-Mobile posted solid first-quarter results amid generally slowing wireless industry growth, taking share from Verizon and fending off cable competitors. The firm modestly increased expectations for full-year customer additions, as it typically does each quarter, but didn’t change its view that revenue per phone customer, or ARPU, will be flat in 2023. We are disappointed that management wasn’t willing to increase ARPU expectations given the launch of the high-priced Go5G rate plans last week, but T-Mobile is often conservative with its forecasts. We are maintaining our $165 fair value estimate.