Text size
T-Mobile management has said the company could direct some $60 billion toward share repurchases between 2023 and 2025.
David Paul Morris/Bloomberg
T-Mobile
US announced a $14 billion share repurchase program on Thursday evening, in the start of a process that could retire some two-thirds of the stock’s free float by the end of 2025.
That reduction in shares outstanding will dramatically increase earnings per share, and is one of the greatest benefits enabled by the wireless company’s 2020 acquisition of Sprint.
T-Mobile stock (ticker: TMUS) was down 0.1% in after-hours trading on Thursday despite the announcement. Wall Street may have been hoping for even more.
In an 8-K filing with the Securities and Exchange Commission on Thursday evening, T-Mobile said its board of directors had approved a stock repurchase program for up to $14 billion through the end of September 2023. It said that up to $3 billion might be spent between now and the end of this year.
At an investor day in early 2021, T-Mobile management said that the company could direct some $60 billion toward share repurchases between 2023 and 2025. The company has a market value of about $182 billion—which recently exceeded rivals
Verizon Communications
(VZ) and
AT&T
(T). More than half of shares are held by
Deutsche Telekom
(DTEGY) and SoftBank (9434.Japan).
Fewer shares outstanding will mean higher earnings per share, and a higher stock price. On average, Wall Street analysts expect T-Mobile’s earnings to grow fourfold…
..
