T-Mobile posted quarterly earnings above and beyond what Wall Street had expected. Apparently, mobile service customers flocked to the nation’s fourth-largest carrier in droves with new customers numbers reaching upwards of 1.33 million, far better than the expected 807,000, though postpaid service is slowing. On the other side, business customers appear to be on the rise with the carrier.
And, on the heels of this announcement, shares of T-Mobile rose more than 4 percent in trading on Thursday.
Looking more closely at the data, second-quarter revenue reached $10.21 billion, again surpassing Reuters estimates of $9.81 billion.
T-Mobile CEO John Legere comments, “In Q2, we delivered our highest absolute service revenue ever with 8% year-over-year growth and 10% in total revenues where we expect to lead the industry for the 16th time in the last 17 quarters,” in a conference call, on Wednesday.
He continues, “If you’re looking for the big news from Q2, you could simply say that T-Mobile’s business continues to perform at peak levels.”
Legere says that the impressive numbers from this quarter could be likely due to the network’s investments and, as he puts it, “good, old-fashioned focus” from engineers. Of course, he also reminds that this was quite a competitive quarter as it was the first full three-month period with all the unlimited plans available on the market.
All in all, T-Mobile stock is up 8 percent on the year (as of close of day on Wednesday).
In addition, Barclay’s analyst Amir Rozwadowski reaffirmed T-Mobile should be a Top Pick within the telecom sector on the heels of this outlook. He goes on to say that this should quell all concern about T-Mobile’s ability to continue gaining more and more market share.
He notes, “A clear beat and raise against heightened competition demonstrates that T-Mobile’s momentum is unlikely to ease anytime soon. Ongoing progress in its fundamentals, expectations for improving cash generation, and its position as potential beneficiary of strategic options (of which management seems to be evaluating several) leads us to reiterate our Overweight rating.”
Similarly, Cowen & Co analyst Colby Synesael attests, “While we continue to believe the stock will be driven by M&A-related stories and events that add near-term risk, the company is showing it can continue to be successful on a standalone basis while it waits to see what ultimately happens.”