T-Mobile US on Wednesday reported third-quarter earnings that topped analyst estimates while revenue missed. TMUS stock slipped although wireless subscriber additions came in above expectations.
Reported before the market open, T-Mobile earnings for the quarter ending Sept. 30 jumped 355% to $1.82 from a year earlier on an adjusted basis.
The wireless services provider said revenue fell 1% to $19.25 billion.
Analysts polled by Visible Alpha expected T-Mobile to report adjusted earnings of $1.72 a share on revenue of $19.35 billion. In the year-earlier period, T-Mobile earned 40 cents on revenue of $19.48 billion.
TMUS Stock: Subscriber Additions Top Views
Also, T-Mobile said it added 850,000 postpaid phone subscribers vs. estimates of 776,000. A year earlier it added 854,000 postpaid phone subscribers.
T-Mobile topped AT&T, which added 468,000 postpaid phone subscribers, and Verizon Communications, which added 100,000.
"With wireless trends remaining far more stable than many expected heading into this year, key questions remain T-Mobile's M&A appetite (particularly scaled fiber assets) and any indications on 2024 — particularly core EBITDA growth as the incremental (Sprint merger) synergy benefits begin to taper," said Evercore ISI analyst Vijay Jayant in a report.
In addition, T-Mobile said Q3 EBITDA — earnings before interest, taxes, depreciation and amortization — rose 12% to $7.5 billion versus estimates of $7.45 billion.
On the stock market today, TMUS stock initially rose on the earnings release, then fell. In morning trades, T-Mobile stock dipped 0.9% to 139.78.
Controlled by Deutsche Telekom, T-Mobile holds a Relative Strength Rating of 65 out of a best-possible 99, according to IBD Stock Checkup. T-Mobile stock is mostly flat in 2023.
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