T-Mobile US Inc. (TMUS) experienced a significant pre-market plunge of 5.25% on Thursday. The sharp decline followed the release of the wireless carrier's second-quarter financial results.
The company reported adjusted earnings per share of $2.99, which beat the analyst consensus estimate of $2.58 by approximately 15.9%. However, quarterly revenue of $22.791 billion came in slightly below the consensus expectation of $22.941 billion. This revenue miss triggered selling pressure, as investors focused on the top-line shortfall as a potential signal of slowing growth momentum, overshadowing the positive earnings performance and other strong metrics.
Despite the market's negative reaction to the revenue figure, T-Mobile delivered several positive operational updates. The company raised its full-year adjusted free cash flow guidance to a range of $18.4 billion to $18.8 billion, up from prior expectations. It also added 277,000 net postpaid accounts in the quarter, exceeding estimates, and reported a 2% year-over-year increase in average revenue per postpaid account.