T-Mobile stock saw a boost early Wednesday following better-than-expected earnings and an upward revision to its full-year free cash flow forecast.

Q3 Earnings Report

For the third quarter that ended in September, T-Mobile reported earnings of $1.82 per share, surpassing the consensus estimate of $1.70 per share tracked by analysts on FactSet. However, the company’s revenue of $19.25 billion fell slightly short of the expected $19.34 billion.

Despite this, T-Mobile managed to add 850,000 postpaid phone customers during the quarter, maintaining a relatively stable customer base compared to the previous year.

Positive Outlook

Investors are primarily focusing on T-Mobile’s future prospects rather than its past performance. The telecommunications firm has raised its guidance for postpaid net customer additions in 2023 to a range of 5.7 million to 5.9 million, up from the previous forecast of 5.6 million to 5.9 million. Furthermore, T-Mobile now anticipates adjusted free cash flow for the year, inclusive of merger-related costs, to be between $13.4 billion and $13.6 billion, surpassing its previous projection of $13.2 billion to $13.6 billion.

Market Response

As a result of these positive developments, T-Mobile’s stock experienced a 1.5% increase during premarket trading on Wednesday, reaching $143.22.

This news follows Verizon’s recent raising of its free cash flow guidance just one day prior.

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