T-Mobile (TMUS) stock gained more than 2% premarket after the company reported impressive second-quarter results and raised its full-year guidance.
The telecom giant exceeded expectations on both earnings per share (EPS) and revenue. T-Mobile delivered EPS of $2.49, beating the consensus estimate of $2.28. Revenue also came in strong at $19.77 billion, exceeding forecasts of $19.58 billion.
T-Mobile said it achieved its best-ever Q2 for postpaid phone net customer additions, reaching a record 777,000. Postpaid service revenues of $12.9 billion grew 7% year-over-year.
High-speed internet net customer additions came in at 406,000, which T-Mobile said was the "highest share of industry net additions ever."
T-Mobile raised its full-year customer and cash flow guidance. The company now expects postpaid net customer additions to be between 5.4 million and 5.7 million, exceeding the previous range of 5.2 million to 5.6 million.
Additionally, core adjusted EBITDA, which is adjusted EBITDA less lease revenues, is expected to be between $31.5 billion and $31.8 billion, versus prior guidance of $31.4 billion to $31.9 billion.
Furthermore, adjusted free cash flow, including payments for Merger-related costs, is expected to be between $16.6 billion and $17.0 billion, an increase from prior guidance of $16.4 billion to $16.9 billion.
"It was another industry-leading quarter for T-Mobile as our continued focus on delivering customers more value and a superior network experience enabled us to outperform our peers in the marketplace and translated into outsized financial growth," said Mike Sievert, CEO of T-Mobile. "Our formula is continuing to work," Sievert stated, emphasizing the company's strong position for future growth.