T-Mobile US on Wednesday reported March-quarter earnings that fell 23% from a year earlier but topped analyst estimates. TMUS stock jumped as wireless subscriber additions came in above expectations.
The company reported first-quarter earnings before the market open. T-Mobile stock popped 5.1% to 131.29 in afternoon trades on the stock market today.
In the three months ending March 31, T-Mobile earnings were 57 cents on an adjusted basis amid the integration of Sprint. The wireless services provider said revenue rose nearly 2% to $20.12 billion.
TMUS Stock: Wireless Subscriber Additions Top Expectations
Analysts expected T-Mobile to report adjusted earnings of 44 cents a share on revenue of $20.13 billion. In the year-earlier period, T-Mobile earned 74 cents on revenue of $19.76 billion.
Also, T-Mobile said it added 589,000 postpaid phone subscribers vs. estimates of 550,000. AT&T added 691,000 subscribers while Verizon Communications lost 36,000. AT&T and Verizon reported earnings last week.
In addition, T-Mobile increased its 2022 outlook for total postpaid subscribers by 300,000, to a range of 5.3 million to 5.8 million.
T-Mobile said EBITDA — earnings before interest, taxes, depreciation and amortization — rose 10% to $6.5 billion.
Wall Street analysts expect T-Mobile to initiate a stock repurchase plan in 2023 or before amid strong free cash flow growth.
Controlled by Deutsche Telekom, T-Mobile shares hold a Relative Strength Rating of 86 out of a best-possible 99, according to IBD Stock Checkup. TMUS stock ended Tuesday in a test of support at its 200-day moving average, below a handle buy point of 129.67.
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