The wireless service provider reported third-quarter earnings of 55 cents per share
T-Mobile US (TMUS) reported revenue for the September quarter that missed analyst expectations as the wireless service provider added fewer postpaid phone subscribers compared to rival AT&T (T). But stocks of T-Mobile rose in late trading on Tuesday amid low expectations for the quarter.
It is the second-largest wireless carrier in the United States, with 106.9 million subscribers as of the end of Q3 2021.
It provides wireless voice and data services in the United States under the T-Mobile and Metro by T-Mobile brands, and also serves as the host network for many mobile virtual network operators.
T-Mobile, which is controlled by Deutsche Telekom (DTEGY), reported third-quarter earnings of 55 cents per share. The wireless services provider said revenue increased 2% to $19.6 billion amid its merger with Sprint.
Analysts expected T-Mobile to report adjusted earnings of 48 cents a share on revenue of $20.22 billion. In the year-earlier period, T-Mobile earned $1 per share on revenue of $19.27 billion.
In after-hours trading on the stock market today, T-Mobile stock added 2.8% to 117.60. TMUS stock trades well below an entry point.
According to T-Mobile, it added 673,000 postpaid phone subscribers, topping estimates of 342,000. But AT&T gained 928,000 postpaid phone subscribers in the September quarter while Verizon Communications (VZ) rose by 429,000.
T-Mobile upped its forecast for 2021 postpaid net customer additions to a range of 5 million to 5.3 million, an increase from prior guidance of 4.4 million to 4.9 million.
AT&T also beat T-Mobile in the June quarter. T-Mobile had been the industry leader in postpaid phone subscriber additions for several years standing.
According to IBD Stock Checkup, T-Mobile stock holds a Relative Strength Rating of only 15 out of a best-possible 99.
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