T-Mobile’s Stock Surpasses Estimates with Strong Earnings and Wireless Subscriber Growth

T-Mobile US (TMUS) announced its first-quarter earnings, which surpassed consensus estimates despite missing revenue projections. The company reported a 26% increase in earnings to $2 per share on an adjusted basis for the quarter ending March 31. However, revenue declined by 0.2% to $19.59 billion. Analysts had expected adjusted earnings of $1.87 per share on revenue of $19.81 billion. In comparison, T-Mobile had earnings of $1.58 per share and revenue of $19.63 billion in the same period of the previous year.

Additionally, T-Mobile saw a substantial increase in wireless subscriber additions, welcoming 532,000 postpaid phone subscribers in the first quarter compared to analyst estimates of 477,000. The company also reported an 8% increase in EBITDA to $7.6 billion, exceeding estimates of $7.56 billion. As a result of this positive news, T-Mobile stock saw a slight increase of 0.7% in extended trading, reaching $165.20.

In terms of customer growth, T-Mobile added 405,000 5G broadband customers in the first quarter, down from 523,000 in the same period of the previous year. The company, which is owned by Deutsche Telekom (DTEGY), holds a Relative Strength Rating of 65 out of a best-possible 99, according to IBD Stock Checkup. T-Mobile’s stock trades approximately 4% below an entry point of 168.64.

Prior to the earnings report, T-Mobile stock had experienced a 1% gain in 2024. For the latest updates on artificial intelligence, cybersecurity, and cloud computing, you can follow Reinhardt Krause on Twitter @reinhardtk_tech. Additionally, if you are interested in trading options or learning about market timing strategies, consider accessing IBD’s premium stock lists, tools, and analysis through IBD Digital.