T-Mobile, US, Inc. (TMUS) jumped over 9% on Monday and are flat in Tuesday morning trade. The wireless carrier’s stock jumped on the announcement of:
T-Mobile added 2 million customers in its recent quarter. The announcement raised sentiment of investors that have seen the company ramp up efforts to pressure competition. The company’s bold pricing and unlimited plans have helped shape wireless companies in the United States, as competitors work to offer similar, more affordable options to consumers.
The addition of 2 million customers in the most recent quarter marks the 14th straight quarter of customer additions over 1 million.
T-Mobile’s growing subscriber numbers have led to the company boosting its profits. The company reported profits of $366 million on the quarter with an EPS of $0.42. A year prior, the company posted profits of $138 million and an EPS of $0.15.
The company was hit with a $48 million fine last week for providing restrictions on the company’s unlimited data plans.
The FCC found that the company misrepresented its plans and imposed the fine. The company’s data plans didn’t provide information that the user’s connection speeds would be slowed after a vague threshold.
Revenue grew by 18% up to $9.2 billion on the quarter. Service revenue grew to $7.1 billion, up 13%. The company’s postpaid customers also grew by 851,000 on the quarter. T-Mobile expects to raise its customer additions to 3.9 million, up from forecasts of 3.7 million.
The guidance is lower than the company’s addition of 4.5 million postpaid customer additions in 2015.
Guidance for EBITA was raised to between $10.2 and $10.4 billion. The figures are up from $9.8 to $10.1 billion.
T-Mobile stock is up over 14% in the last three months.