T-Mobile US Inc Raises Guidance, Office Depot Inc Misses Estimates

T-Mobile US Inc Raises Guidance, Office Depot Inc Misses Estimates
By T-Mobile (File derived from T-Mobile logo.svg) [Public domain], via Wikimedia Commons

T-Mobile US and Office Depot released their latest earnings reports before opening bell this morning. T-Mobile posted adjusted earnings of 10 cents per share, which was in line with consensus, and $8.6 billion in revenue, which was slightly ahead of consensus at $8.4 billion.

Office Depot posted adjusted earnings of 10 cents per share and $3.5 billion in revenue, against the consensus estimates of 12 cents per share in earnings and $3.62 billion in revenue.

ValueWalk’s December 2021 Hedge Fund Newsletter: Hedge Funds Avoid Distressed China Debt

InvestWelcome to our latest issue of issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring hedge funds avoiding distressed china debt, growth in crypto fund launches, and the adapting venture capital industry. Q3 2021 hedge fund letters, Read More

T-Mobile swings to profit

Including the gain from the new wireless spectrum, T-Mobile US reported earnings of 56 cents per share, compared to earnings of 34 cents per share in the previous quarter and losses of 9 cents per share in the year-ago quarter. Service revenues grew 13% year over year to $6.6 billion, while adjusted EBITDA increased 98.1% to $2.7 billion, including a gain of $636 million from the new spectrum.

The mobile carrier added 2.2 million net new subscribers and more than 1 million branded postpaid subscribers during the first quarter. It also added 877,000 branded postpaid phones and saw recorded branded prepaid net adds of 807,000, marking an 11-fold increase in this metric. The branded postpaid phone churn rate declined 13 basis points sequentially to 1.33%.

T-Mobile management raised their guides for customers and adjusted EBITDA for this year moving the range for branded postpaid net adds from a range of 2.4 million to 3.4 million to a range of 3.2 million to 3.6 million. Their outlook for adjusted EBITDA moves from between $9.1 billion to $9.7 billion to between $9.7 billion and $10.2 billion.

Shares of T-Mobile US edged higher by 2.72% to $42.30 in premarket trading this morning.

Regulatory review weighs on Office Depot’s results

Office Depot’s reported earnings were 8 cents per share. The office supply chain said the extended regulatory review period has had a substantial impact on its business, causing it to miss expectations. Management expects a decision on the Staples acquisition by May 10.

The North American Retail Division saw sales fall from $1.7 billion last year to 1.5 billion this year, while sales in the Business Solutions business declined from $1.5 billion in the year-ago quarter to $1.4 billion. International sales declined from $747 million last year to $670 million this year.

Office Depot stock was inactive in the premarket trading hours.

Updated on

No posts to display