T-Mobile US Inc.'s latest earnings show that the company is doing well on its own – even when the company's Sprint Corp. agreement. reportedly approaching approval from federal regulators.
The company topped the revenue expectations on Thursday, while falling short on the top line. Estimates for post-paid net supplements, which came to 1.1 million, also shattered over 884,000 FactSet consensus.
"For a long time, T-Mobile prioritized growth over profitability," wrote Moffett Nathanson analyst Craig Moffett, in a note to clients. "For the second quarter, they both deliver." He said the company showed the best ever margins and pimples in the last period while proving its case to be "far, the industry's best growth story."
was at some point on the track to shut down a new highlight during Thursday's session, before the results came out, but they became negative towards the end of the action in the midst of worries about a delay in the merger approval timeline. The Wall Street Journal reported late Thursday that the Justice Department was trying to turn state lawyers, some of whom sued to bar the agreement, and others may still be in doubt about the merger despite not signing the suit.
The company ended indefinitely with postponing the conference according to revenue, which was scheduled for Thursday after the closing clock. Earlier this week, T-Mobile had pushed the call back to Thursday afternoon from Thursday morning.
T-Mobil's latest tracks have Moffett scratched his head over the pressure of Sprint
agreement, since the company appears to show solid cost controls that drive operational and expansion margins. Although he is concerned with T-Mobile's shares regardless of the agreement of the agreement and said he is still not quite sure that the merger will happen, Moffett regretted the fact that T-Mobile's business improvements are being overlooked.
"It's a shame that all the noise around the merger will drown out what is still one of the best growth stories in TMT," he said. "However, it is no doubt reassuring that if T-Mobile has to continue on a standalone basis, well , the future looks bright. "
Earlier in the day he downgraded Dish Network Corp.
shares to sell from neutral due to his belief that the company's likely move into the wireless industry after the completion of the T-Mobile Sprint agreement would be "very bad "for Dish investors.
T-Mobile shares have risen 26% so far this year, while the S&P 500
has increased 20%.