T-Mobile US Inc. shares (TMUS) rose 1.3% in premarket trade Wednesday, after the telecoms company beat profit estimates for the first quarter by a wide margin, offsetting a revenue miss. T-Mobile posted net income of $713 million, or 57 cents a share, for the quarter, down from $933 million, or 74 cents a share, in the year-earlier period. Revenue rose to $20.120 billion from $19.759 billion. The FactSet consensus was for EPS of 44 cents and revenue of $20.134 billion. The company said it expects to complete its Sprint customer migration by year-end as well as the decommissioning of Sprint sites it no longer needs. The merger with Sprint closed in 2020. The company added 1.3 million postpaid net customers in the quarter, including 589,000 postpaid phone net customers. It also added 338,000 high speed internet net customers. Some 45% of postpaid customers are using a 5G phone and 5G devices account for more than half of its total network traffic. The company is now raising its guidance for synergies from its merger with Sprint to $5.2 billion to $5.4 billion in 2022, from a previous range of $5.0 billion to $5.3 billion. It expects 2022 postpaid net customer additions of 5.3 million to 5.8 million, up from prior guidance of 5.0 million to $5.5 million. It expects free cash flow of $7.2 billion to $7.6 billion, compared with prior guidance of $7.1 billion to $7.6 billion. Shares have gained 8% in the year to date, while the S&P 500 has fallen 12%.
(END) Dow Jones Newswires
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