T-Mobile Earnings: Strong Customer Growth Comes at the Expense of Pricing

T-Mobile delivered another solid quarter, with continued market share gains and margin expansion. Management also provided a high-level view of 2024, indicating that it should meet profitability expectations presented at its 2021 investor day and that capital spending may decline modestly versus 2023. We had expected greater margin expansion next year. We suspect management plans to prioritize customer growth over price increases to a greater degree than we'd assumed, offsetting some of the benefits from the recent workforce reduction. We are maintaining our fair value estimate at $165 per share.