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T-Mobile Stock Rises As Earnings Beat, Sprint Merger Momentum Gains Speed

T-Mobile US (TMUS) reported March-quarter earnings and revenue that topped analyst estimates roughly a year after the industry-changing Sprint merger closed. T-Mobile stock climbed as it added more postpaid wireless phone subscribers than expected.


Controlled by Deutsche Telekom (DTEGY), T-Mobile late Tuesday said first-quarter adjusted earnings fell 33% from a year earlier to 74 cents per share. The wireless services provider said a rise in outstanding shares tied to the Sprint merger reduced earnings.

T-Mobile said revenue rose 78% to $19.76 billion, boosted by its merger with Sprint. T-Mobile did not provide a year-over-year revenue growth comparison for the combined company.

Analysts expected T-Mobile to report adjusted earnings of 57 cents a share on revenue of $18.9 billion. In the year earlier period, T-Mobile earned $1.10 per share on revenue of $11.1 billion.

T-Mobile said it added 773,000 postpaid phone subscribers vs. 452,000 a year earlier. Analysts had estimated 497,000 postpaid phone subscriber additions.

T-Mobile Stock Rises After Hours

T-Mobile stock rose 2.7% to near 132 in after-hours trading on the stock market today. In Tuesday’s regular session, shares fell 2.3%.

In the first quarter, T-Mobile said earnings before interest, taxes, depreciation and amortization, also known as EBITDA, rose 2% to $6.9 billion from the December quarter. Analysts estimated adjusted EBITDA of $5.59 billion.

Heading into the earnings report, T-Mobile stock traded below an entry point of 135.64. T-Mobile stock holds a Relative Strength Rating of 45 out of a best-possible 99.

Analysts say T-Mobile earnings growth is tied to merger synergies with Sprint. In addition, the company holds an edge in 5G wireless spectrum over Verizon Communications (VZ) and AT&T (T).

T-Mobile is just one of many 5G wireless stocks to watch.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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