T-Mobile Stock Gains on Solid Earnings, Free Cash Flow Forecast

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T-Mobile said it added 850,000 postpaid phone customers in the third quarter.

T-Mobile stock moved higher early Wednesday after the wireless provider posted profit that beat estimates and raised the lower end of its full-year free cash flow forecast.

For the third quarter ended in September, T-Mobile reported earnings of $1.82 per share, topping consensus of $1.70 per share among analysts tracking the stock on FactSet. Revenue of $19.25 billion was lower than the $19.34 billion analysts expected. T-Mobile said it added 850,000 postpaid phone customers in the quarter, relatively flat year over year.Investors likely focused on what’s ahead for the telecommunications firm rather than what’s in the books.

T-Mobile raised its forecast for postpaid net customer additions for 2023 to between 5.7 million and 5.9 million from prior guidance of 5.6 million to 5.9 million. It also said adjusted free cash flow for the year, including payments for merger-related costs, is estimated to be between $13.4 billion and $13.6 billion, up from prior forecast of between $13.2 billion and $13.6 billion.Write to Karishma Vanjani at karishma.vanjani@dowjones.

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