T-Mobile (TMUS) Q1 Earnings Report Preview

T-Mobile U.S. Inc. (NASDAQ:TMUS) traces its roots back to 1994 when VoiceStream Wireless was established as a subsidiary of Western Wireless Corp. In 2001, German-based Deutsche Telekom acquired VoiceStream and renamed it T-Mobile. The company has come a long way since then. It became the second biggest mobile network in the U.S. last year following its merger with Sprint Corp (see 10 best telecom stocks to invest in).

The company recently announced strong financial results for the first quarter. T-Mobile reported earnings of $933 million, or 74 cents per share for the quarter, versus $951 million, or $1.10 a share in the comparable period of 2020. Analysts on average were looking for earnings of 54 cents per share.

Revenue for the quarter came in at $19.8 billion, compared to $11.1 billion in the year-ago quarter, and above the consensus forecast of $18.7 billion. The company added 1.2 million postpaid customers during the quarter, while the total net additions were 1.4 million.

T-Mobile said that it is a clear leader in 5G speed and availability, with its Extended Range 5G covering 295 million people across 1.6 million sq miles, and Ultra Capacity 5G covering 140 million people.

Speaking on the results, CEO Mike Sievert said in a statement, “We just keep pushing further ahead of the competition. Our network leadership is fueling customer momentum, delivering merger synergies and expanding our addressable markets for growth. We have so much confidence that we are raising 2021 guidance just one quarter into the year. Our mission is to be the very best at connecting customers to their world and we’re delivering on it.”

Looking forward, T-Mobile projected postpaid net customer additions in the range of 4.4 million to 4.9 million for fiscal 2021, up from its previous outlook of 4 million to 4.7 million. T-Mobile stock made a new 52-week high of $136.86 in the mid-day trading Thursday following better-than-expected financial results.