T-Mobile US (TMUS) reported its first-quarter earnings that exceeded analyst estimates, despite missing revenue projections. The company’s earnings increased by 26% to $2 per share on an adjusted basis for the quarter ending March 31, while 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, but T-Mobile surpassed these estimates with its strong performance.
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. In addition, the company reported an 8% increase in EBITDA to $7.6 billion, exceeding estimates of $7.56 billion. These positive results caused T-Mobile stock to see a slight increase of 0.7% in extended trading, reaching $165.20.
Despite this growth, T-Mobile’s customer growth slowed down slightly in the first quarter as it added only 405,000 new 5G broadband customers compared to the same period last year when it had added 523,000 customers. However, T-Mobile remains a strong player in the telecommunications industry and is owned by Deutsche Telekom (DTEGY). The company holds a Relative Strength Rating of 65 out of a best-possible 99 from IBD Stock Checkup and trades approximately 4% below an entry point of $168.64 before the earnings report was released.
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Overall, T-Mobile’s solid performance in the first quarter highlights its continued strength as a leader in the telecommunications industry despite facing challenges like slowing customer growth and increased competition from other players like Verizon (VZ) and AT&T (T).
