T-Mobile's stock gains after earnings beat expectations
Shares of T-Mobile U.S. Inc. rose 0.8% in premarket trade Thursday, after the telecommunications company reported a fourth-quarter profit that topped expectations and revenue that was in line, while service revenue fell shy. Net income fell to $640 million, or 75 cents a share, from $795 million, or 93 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 69 cents. Total revenue rose 6% to $11.45 billion, compared with the FactSet consensus of $11.40 billion, while 6% growth in service revenue to $8.19 billion was just below expectations of $8.25 billion. Post-paid phone churn was 0.99%, below expectations of 2.13%. Branded post-paid phone average revenue per user (ARPU) slipped 0.2% to $46.29, while branded pre-paid ARPU declined 0.6% to $38.39. Total net customer additions improved to 2.40 million from 1.85 million, beating the FactSet consensus of 1.88 million. The stock has declined 4.8% over the past three months through Wednesday, while the Dow Jones Industrial Average has slipped 3.0%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.