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