T-Mobile US reported first-quarter earnings that topped consensus estimates while revenue missed. In a move that could boost revenue growth for T-Mobile stock, the wireless service provider may soon hike prices, one analysts said.
Controlled by Deutsche Telekom, T-Mobile reported earnings after the market close on Thursday.
T-Mobile earnings for the quarter ending March 31 jumped 26% to $2 per share on an adjusted basis.
Further, the wireless services provider said revenue fell 0.2% to $19.59 billion.
"A significant development during T-Mobile's earnings call was the disclosure by management that T-Mobile will be implementing some form of price increase, which we believe could be announced shortly and take effect most likely in June," said Deutsche Bank analyst Bryan Kraft in a report.
He added: "T-Mobile has been more measured than its large competitors in taking price, actually doing very little to date. While T-Mobile now seems about to take a somewhat larger bite of the apple, we think that the company is taking care to remain underneath of the AT&T and Verizon pricing umbrella and maintain its position as the value leader in the market."
Analysts polled by FactSet expected T-Mobile to report adjusted earnings of $1.87 a share on revenue of $19.81 billion. In the year-earlier period, T-Mobile earned 1.58 on revenue of $19.63 billion.
TMUS Stock: Subscriber Additions
Also, T-Mobile said it added 532,000 postpaid phone subscribers vs. estimates of 477,000. A year earlier, it added 538,000 postpaid phone subscribers.
In addition, T-Mobile said Q1 EBITDA — earnings before interest, taxes, depreciation and amortization — rose 8% to $7.6 billion vs. estimates of $7.56 billion.
On the stock market today, TMUS stock edged down 0.2% to 163.76 in morning trading.
In Q1, T-Mobile said it added 405,000 5G broadband customers vs. 523,000 in the year-earlier period.
Meanwhile, T-Mobile holds a Relative Strength Rating of 65 out of a best-possible 99, according to IBD Stock Checkup. T-Mobile trades about 4% below an entry point of 168.64.
Heading into the T-Mobile earnings report, TMUS stock had gained 1% in 2024.
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