T-Mobile Tops Estimates With Seventh-Straight Profit Increase
(Bloomberg) -- T-Mobile US Inc. posted fourth-quarter profit that topped Wall Street estimates, with the U.S. wireless carrier logging a seventh-straight quarter of earnings growth while it pursues regulatory approval of its $26.5 billion merger with Sprint Corp.
- Fourth-quarter earnings, excluding some items, rose to 75 cents a share, beating the 69-cent average of analysts’ estimates compiled by Bloomberg. The company expects to add 2.6 million to 3.6 million regular monthly subscribers this year, fewer than the 4.5 million it added last year.
- Although T-Mobile issued a downbeat forecast for subscriber gains, the company routinely starts with a conservative outlook and raises it over the year as results beat expectations.
- To clinch the Sprint deal, T-Mobile vowed in a letter to regulators it won’t raise prices for three years if they approve the transaction. While T-Mobile has thrived on its own, unlike Sprint, executives of both companies say they can create a stronger competitor together. They’re scheduled to defend the merger in congressional hearings next week.
- T-Mobile is the last of the big carriers to report fourth-quarter results. AT&T Inc. disappointed investors by reporting little new subscriber growth and steep losses of pay-TV customers. Verizon Communications Inc. suffered its first revenue miss in almost two years and issued a tepid forecast.
- Shares rose as much as 1.6 percent to $68.01 in early trading Thursday. The stock is up 5.2 percent this year, outperforming both of its larger peers.
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