Verizon Stock – T-Mobile (TMUS) Boosts Subscriber Targets After Earnings Beat Estimates
T-Mobile US Inc. topped Wall Street earnings estimates and boosted its subscriber forecast, a sign the carrier is exploiting its lead in 5G capacity to outpace rivals Verizon Communications Inc. and AT&T Inc.
- Profit amounted to 74 cents a share, T-Mobile said Tuesday, compared with an average estimate of 55 cents. Revenue also beat projections, and the company now expects to add as many as 4.9 million subscribers this year, up from no more than 4.7 million in its previous outlook.
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- The company is still digesting its year-ago acquisition of Sprint Corp., but now expects as much as $3.1 billion in so-called merger synergies. The benefits come in the form of revenue gains and cost savings from combining the two businesses.
- About 50% of Sprint traffic is now carried on the T-Mobile network, twice as much as last quarter. And about a fifth of Sprint customers have been moved over to T-Mobile, the company said.
- T-Mobile added 1.2 million postpaid customers last quarter, T-Mobile said, leading the industry.
- T-Mobile rose as much as 3.1% to $132.49 in extended trading Tuesday. The stock had been down nearly 5% this year through the close, compared with an 11% advance for AT&T and a nearly unchanged stock performance for Verizon.
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- See T-Mobile earnings surprises.