On July 23, T-Mobile US declined 7.38% in regular trading, trading at $177.335/share, with turnover of $89.66 million. The stock came under pressure after the company reported second-quarter results that missed on the top line despite a significant earnings beat.
T-Mobile posted Q2 EPS of $2.99, surpassing the consensus estimate of $2.58 by approximately 15.89% and representing a 5.28% year-over-year increase. However, revenue came in at $22.79 billion, falling short of the $22.94 billion analyst expectation. Net postpaid account additions totaled 277,000, down 13% year-over-year, though still above the expected 264,300. The company raised its full-year adjusted free cash flow guidance to $18.4-$18.8 billion from a prior estimate of $18.1 billion, while maintaining other full-year targets unchanged. Despite the earnings beat and improved cash flow outlook, the revenue shortfall combined with decelerating subscriber growth prompted broad-based selling. Additionally, the company recently initiated a network-wide plan upgrade affecting over 1,100 legacy billing codes with modest price increases, which may create near-term friction for user growth.
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