T-Mobile US (TMUS) reported its first-quarter earnings, which exceeded analysts’ expectations despite missing revenue projections. The company reported a 26% increase in adjusted earnings to $2 per share 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.
T-Mobile also 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. Despite this decline in broadband customers, T-Mobile’s stock trades approximately 4% below an entry point of 168.64 and holds a Relative Strength Rating of 65 out of a best-possible 99 according to IBD Stock Checkup.
Prior to the earnings report, T-Mobile stock had experienced a modest gain in value throughout the year with a return on investment (ROI) of around -3%. For more information on artificial intelligence and cybersecurity trends you can follow Reinhardt Krause on Twitter @reinhardtk_tech.
If you are interested in learning about market timing strategies and trading options or accessing premium stock lists and analysis tools provided by IBD Digital then click here for more information.
Overall it is clear that despite missing revenue projections and declining broadband customer numbers T-Mobile still experienced significant growth and positive results that led to an increase in their stock price even if only slightly
