T-Mobile USA looks to utilize the offering proceeds for general corporate purposes, including share repurchases, dividends, and refinancing of existing indebtedness.

Last week, T-Mobile US reported fourth-quarter revenue of $21.87 billion (versus $20.48 billion Y/Y), topping the analyst estimate of $21.31 billion.

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Earnings of $2.57 per share surpassed the consensus estimate of $2.26. However, T-Mobile US’ adjusted free Cash flow of $4.1 billion declined by 5%.

After the quarterly print, at least nine Wall Street firms, including Wells Fargo, Scotiabank, JP Morgan, Benchmark, RBC Capital, BofA Securities, Oppenheimer, and Barclays, raised their price forecast on T-Mobile US.

Last December, KeyBanc analyst Brandon Nispel downgraded T-Mobile US’s rating, citing the company’s acquisitions in the Fiber business at significant multiples that have yet to be proven.

The S&P Telecom Select Industry Index gained 41% in the last 12 months, topping the S&P 500’s over 22% gain.

Telecom companies are known for their cash flow generation, which goes towards paying dividends and buybacks, driving ROE. T-Mobile US currently pays a quarterly dividend of $3.52 per year for a yield of 1.48%.

T-Mobile’s US stock surged over 46% in the last 12 months. Investors can gain exposure to the stock via the iShares Core S&P 500 ETF (NYSE:IVV) and the Vanguard Growth ETF (NYSE:VUG).

Price Action: TMUS stock traded higher by 0.23% to $237.80 premarket at the last check on Wednesday.

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