T-Mobile Stock Rises as Carrier Beats Estimates, Raises Guidance

T-Mobile’s strong report follows better-than-expected results from Verizon and AT&T earlier this week. (Gabby Jones/Bloomberg)

T-Mobile US stock was climbing after the telecommunications company reported better-than-expected second-quarter financials and raised its guidance for postpaid net customer additions.

T-Mobile posted second-quarter adjusted earnings of $2.84 a share on revenue of $21.13 billion. Analysts surveyed by FactSet were expecting earnings of $2.68 a share on revenue of $21.04 billion.

In the same period last year, T-Mobile reported earnings of $2.49 a share on revenue of $19.77 billion.

“Q2 results, they’re fabulous results, and really demonstrate the continued delivery of this very unique model that we’ve built, which is the combination of the best network, the best value, and the best experiences,” CFO Peter Osvaldik told Barron’s.

The company overall added 1.77 million postpaid net customers in the quarter, above the 1.35 million Wall Street was anticipating. Postpaid phone customer additions were 830,000, compared to the 704,500 analysts expected, and a rise from the 777,000 added in the same period a year prior.

T-Mobile’s postpaid churn rate of 0.9% in the quarter—a metric for telecoms that measures the percentage of customers that exited their contracts—was in line with Wall Street estimates.

For the year, T-Mobile said it now expects postpaid net customer additions to be between 6.1 million and 6.4 million, an increase from prior guidance of 5.5 million to 6 million.

Shares were climbing 5.9% after the stock market closed following the results.

T-Mobile’s strong results follow better-than-expected second-quarter financial results reported by competitors Verizon Communications and AT&T earlier this week.

Write to Angela Palumbo at angela.palumbo@dowjones.com