T-Mobile US (TMUS) reported June-quarter earnings and revenue that topped analyst estimates, but the wireless service provider added fewer postpaid phone subscribers than rival AT&T (T). T-Mobile stock fell on the news.
Controlled by Deutsche Telekom (DTEGY), T-Mobile late Thursday said second-quarter adjusted earnings popped 765% to 78 cents per share from a year earlier.
In the T-Mobile earnings report, the company said revenue rose 13% to $20 billion, boosted by its merger with Sprint.
Analysts expected T-Mobile to report adjusted earnings of 53 cents a share on revenue of $19.37 billion. In the year-earlier period, T-Mobile earned 9 cents per share on revenue of $17.7 billion.
T-Mobile said it added 627,000 postpaid phone subscribers vs. 253,000 a year earlier. Analysts had estimated 595,000 postpaid phone subscriber additions. But AT&T on July 22 said it added 789,000 postpaid phone subscribers in the June quarter. T-Mobile has claimed the title of most postpaid subscriber additions for several years standing.
T-Mobile Stock: One Profit Measure Tops Estimates
For the quarter, T-Mobile said earnings before interest, taxes, depreciation and amortization, also known as EBITDA, came in at $6.9 billion versus estimates of $6.68 billion.
T-Mobile stock fell 1.8% to near 142 in after-hours trading on the stock market today. TMUS stock trades above a buy zone from a flat base entry point of 135.64.
One-third of Sprint customers have been moved to the T-Mobile network, the company said.
T-Mobile stock holds a Relative Strength Rating of 69 out of a best-possible 99.
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