Why T-Mobile Surged 13.9% in February
Shares of U.S. telecom operator T-Mobile (NASDAQ: TMUS) rose 13.9% in February, according to data from S&P Global Market Intelligence. The jump was a bounce-back from a tumultuous January in which many top tech stocks sold off.
T-Mobile reported fourth-quarter earnings at the beginning of the month, showing strong results. More importantly, management also issued strong guidance that soothed nerves over increased competition in the U.S. telecom market.
In Q4, T-Mobile reported revenue growth of 2.2%, which missed analyst expectations, but earnings per share of $0.34, which handily beat expectations. While 2.2% revenue growth doesn't seem like much, investors should note that total revenue for telecom companies isn't that relevant. That's because of significant hardware sales and leases, which phone companies often sell at heavy discounts to generate recurring service revenue.
Source Fool.com
