T-Mobile Tops Estimates, Extends 11-Quarter Profit-Growth Streak
(Bloomberg) -- T-Mobile US Inc. posted a profit that topped Wall Street estimates, logging its 11th-straight quarter of earnings growth while it awaits U.S. court approval of its $26.5 billion takeover of Sprint Corp.
- Fourth-quarter earnings, excluding some items, rose to 87 cents a share, on sales of $11.88 billion. Analysts predicted 83 cents in earnings and $11.8 billion in sales, according to an average of analysts estimates compiled by Bloomberg. T-Mobile expects to add 2.6 million to 3.6 million new regular monthly subscribers this year. The fastest-growing U.S. wireless carrier added 4.5 million customers last year.
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- The downbeat forecast for full-year subscriber gains fits a pattern. The company routinely starts with a conservative outlook and raises it over the year as results beat expectations.
- U.S. District Court Judge Victor Marrero is expected to deliver a decision on the Sprint takeover within weeks. A group of state attorneys general sued to block the deal, saying it threatens to reduce competition and harm consumers.
- T-Mobile, like rivals Verizon Communications Inc. and AT&T Inc., launched 5G wireless service last year, and now the carriers are racing to sign up the first customers as new models of 5G phones arrive later this year.
- Shares were mixed in after-hours trading Thursday. The stock is up more than 21% in the past year, matching the S&P 500 Index and contrasting with a 20% drop for Sprint.
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- See T-Mobile estimates.
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