In the third quarter, revenues moved up 6% annually to a record high of $8.1 billion, aided by a further strong growth in subscription numbers. Consequently, earnings per share moved up to $0.93 from $0.92 in the third quarter of 2017. Both the numbers surpassed market expectations.
New technology and the roll-out of 5G are expected to have a positive impact on the company’s top-line performance
Taking its planned merger with Sprint closer to completion, T-Mobile secured shareholders’ approval for the deal during the fourth quarter. The combination is expected to give the company a competitive edge over its rivals in the fast-evolving 5G segment.
Last week, Sprint reported a net loss of $141 million or $0.03 per share for its most recent quarter, compared to profit last year, though a marked uptick in wireless services pushed up revenues that also topped analysts’ forecast. AT&T posted a 15% growth in third-quarter revenues, with strong contributions from the Time Warner acquisition. Earnings per share rose to $0.86 from $0.78.
Related: T-Mobile-Sprint deal likely to close in first quarter
Considering the positive outlook on T-Mobile and the high chances of fourth-quarter earnings beating the street view, the stock is a suitable investment option for long-term investors, ahead of the earnings report.
T-Mobile shares traded lower during Tuesday’s regular session, still hovering near the nine-year high seen last year. The stock has gained about 15% in the past twelve months.