What is driving T-Mobile Us Inc (NASDAQ: TMUS) stock

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T-Mobile Us Inc (NASDAQ: TMUS) stock surged over 7.3% on May 7th, 2020 (as of  12:10 pm GMT-4; Source: Google finance) after the company posted solid results for the first quarter of FY 20. The company has reported first-quarter net income of $951 million, compared to $908 million, in the year-ago period. The company did not provide an outlook for 2020, and said that it was unable to guide on net income on a forward-looking basis.

The company anticipates its business, liquidity, financial condition and operating results to continue to be adversely affected by the COVID-19 pandemic for the remainder of 2020 and potentially thereafter. Meanwhile, after a long courtship, T-Mobile finally closed its acquisition of Sprint at the beginning of April. Sprint has reported more than half a million net postpaid additions in March as data-device additions made up for phone losses. The combined entity expects a significant value creation opportunity as will be working to unlock the potential of the increased scale from the combination and the achievement of an projected $43 billion in synergies.

On the other hand, TMUS has achieved significant 5G firsts milestones for standalone architecture (SA) 5G with Cisco, Ericsson, MediaTek, Nokia, OnePlus and Qualcomm. These achievements, using the Un-carrier’s newly built 5G core, will bring T-Mobile closer to bringing its nationwide 5G network to the next level. In tech terms, SA 5G will help in eliminating the need for a mid-band LTE anchor, cutting out some of the limitations experienced today. It is now the future of 5G. SA will allow 5G to reach its full potential by increasing coverage and laying a foundation for game-changing applications that can utilize blazing fast speeds, real-time responses and massive connectivity.

TMUS in the first quarter of FY 20 has reported the adjusted earnings per share of $1.10, beating the analysts’ estimates for the adjusted earnings per share of $1.03. The company had reported the adjusted revenue of $11.11 billion in the first quarter of FY 20. The company has reported 5% increase in Service revenues of $8.7 billion in Q1 2020, with Branded postpaid service revenues rising by 7%. The company has posted 12% increase in adjusted EBITDA to $3.7 billion in Q1 2020. The company generated 16% increase in Q1 Net cash provided by operating activities to $1.6 billion & 18% increase in Q1 Free Cash Flow to $732 million.

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