Shares of T-Mobile (TMUS) are up 3% after the U.S. telecommunications company reported strong quarterly financial results and wireless subscriber additions.
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T-Mobile reported earnings per share (EPS) of $2.61 and $20.16 billion in revenue for this year’s third quarter. The result beat the consensus forecast of analysts that called for $2.43 in per share earnings.
T-Mobile also reported strong quarterly wireless subscriber additions as more people choose its discount plans that bundle streaming services such as Netflix (NFLX). The company said that it added 865,000 postpaid phone customers in the quarter, surpassing estimates of 727,500 additions, according to FactSet.
T-Mobile Raises Guidance
In addition to the strong Q3 results, T-Mobile also lifted its forward guidance, saying it now expects full-year postpaid net customer additions of 5.6 million to 5.8 million, up from earlier estimates of 5.4 million to 5.7 million.
Management attributed the growth to its high-speed 5G wireless plans, which are proving to be popular with consumers. The company announced in September of this year that it will launch a new artificial intelligence (AI) decision-making platform called “IntentCX” in partnership with privately held OpenAI.
TMUS stock has risen 39% so far this year.
Is TMUS Stock a Buy?
T-Mobile has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 19 Buy recomendations made in the last three months. There are no Hold or Sell ratings on the stock. The average TMUS price target of $216.79 per share implies 1.88% downside potential from current levels.
