T-Mobile slides as tough competition weighs on subscriber growth
Shares of T-Mobile slid more than 7% in early trading after the wireless giant fell short of Wall Street’s subscriber growth estimates — despite posting a solid earnings beat and bumping up its full-year outlook.
The company added 495,000 monthly phone subscribers last quarter, missing the 506,400 analysts were expecting.
That miss put a damper on otherwise strong numbers: earnings per share rose to $2.58, above the $2.47 forecast, while revenue hit $20.9 billion — down nearly 5% from last year, but still ahead of estimates.
T-Mobile raised its full-year profit forecast to a range of $33.2 billion to $33.7 billion, up $100 million from prior guidance. But with competition intensifying, subscriber growth is becoming a tougher sell. To stay in the game, T-Mobile this week rolled out new plans that offer five-year price locks and monthly lines starting at $25 — a clear play for value-conscious customers.
Despite today’s dip, T-Mobile shares are still up double-digits on the year.
That miss put a damper on otherwise strong numbers: earnings per share rose to $2.58, above the $2.47 forecast, while revenue hit $20.9 billion — down nearly 5% from last year, but still ahead of estimates.
T-Mobile raised its full-year profit forecast to a range of $33.2 billion to $33.7 billion, up $100 million from prior guidance. But with competition intensifying, subscriber growth is becoming a tougher sell. To stay in the game, T-Mobile this week rolled out new plans that offer five-year price locks and monthly lines starting at $25 — a clear play for value-conscious customers.
Despite today’s dip, T-Mobile shares are still up double-digits on the year.
