T-Mobile Raises Annual Free Cash Flow Forecast; Q3 Profits and Subscriber Additions Exceed Expectations

T-Mobile's robust performance attributed to affordable plans, solid promotional activity, and customer migration to higher-tiered unlimited plans; Shakes market with expectation-beating earnings of $1.82 per share.

T-Mobile has increased the lower end of its annual free cash flow forecast, owing to better-than-expected quarterly subscriber additions and earnings as a result of the popularity of its more affordable plans.
The company's stock rose nearly 2% in premarket trading, attributed to fewer customers switching operators, solid promotional activities, and higher customer migration to top-tier unlimited plans.
T-Mobile has adjusted its free cash flow forecast for the year to between $13.4 billion and $13.6 billion, compared to its prior prediction of $13.2 billion to $13.6 billion.
The telecom conglomerate surpassed FactSet's estimate by adding 850,000 postpaid phone customers in the third quarter, the most among competitors.
Excluding certain items, T-Mobile earned $1.82 per share in the third quarter, beating Wall Street's expectations of $1.74 per share.