T-Mobile US reported September-quarter earnings that topped analyst estimates while revenue missed. Still, TMUS stock climbed as the company added more wireless postpaid phone subscribers than expected and led the industry for the first time since early 2021.
The wireless phone company reported third quarter earnings after the market close on Thursday. TMUS stock jumped 7.4% to close at 151 on the stock market today. With the gain, T-Mobile stock moved just above a buy zone.
For the three months ending Sept. 30, T-Mobile earnings came in at 40 cents a share on an adjusted basis, down 27% from a year earlier, amid the integration of Sprint.
The company said revenue fell a small fraction to $19.48 billion. Wireless service revenue rose 4% to $15.4 billion, in line with estimates.
Analysts predicted T-Mobile would report earnings of 30 cents a share on revenue of $20 billion. In the year-earlier period, T-Mobile earned 55 cents on revenue of $19.62 billion.
"It is clear that TMUS's leadership in 5G network quality and lowest prices continue to drive market share gains," said Oppenheimer analyst Tim Horan in a report. "Positively, it has just shut down the Sprint network and will be complete with the merger next year when the full synergies should hit."
T-Mobile said core adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 11% to $6.7 billion, in line with estimates.
TMUS Stock: Wireless Subscribers
T-Mobile said it added 854,000 postpaid phone subscribers vs. estimates of 739,000. In the third quarter, AT&T added 708,000 phone subscribers while Verizon Communications added 8,000.
Postpaid phone subscribers spend the most on wireless services and often sign up for unlimited data plans.
T-Mobile said it added 578,000 home and small business broadband subscribers, edging by estimates of 575,000. Most of the broadband subscribers use T-Mobile's 5G wireless network.
T-Mobile repurchased $669 million of its own stock in the third quarter. The company recently authorized a $14 billion buyback of TMUS stock.
T-Mobile owns a buy point of 142.79 from a double-bottom base. T-Mobile stock has gained 28% in 2022.
Controlled by Deutsche Telekom, T-Mobile stock holds a Relative Strength Rating of 91 out of a best-possible 99, according to IBD Stock Checkup.
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