Mobile US raises outlook again after solid Q2

T-Mobile shares climb in early trading after the mobile carrier crushes earnings

The carrier raised its 2017 outlook for several financial metrics and reported that second-quarter net income more than doubled, to $581 million, or 67 cents per share. Postpaid phone churn fell to 1.10 percent, down 17 basis points year-on-year and 8 points less than in Q1, while ARPU was flat year-on-year, at United States dollars 47.01, in line with the company's full-year outlook.

T-Mobile, the little magenta phone company that could, isn't so little any more. The company confirmed the roll-out of 600 MHz spectrum had started and the first sites should go live in August.

You can't get enough of T-Mobile.

In terms of infrastructure, the carrier said that its 700 MHz deployment is "essentially complete", covering 271 million potential customers in 575 market areas.

Shortly after the opening bell, T-Mobile shares traded over 1 percent higher. T-Mobile sells prepaid service through its MetroPCS brand. In the same quarter last year, T-Mobile added 646,000, meaning it increased customer growth by over 30,000 customers per month year-on-year.

T-Mobile shares rose over 4 percent in premarket trading Thursday, a day after the telecommunications company announced quarterly earnings that far surpassed expectations. "We expect to capture all of the industry's postpaid phone growth with 786,000 branded post-paid phone customers in the quarter".

T-Mobile's pricing tactics are facing pressure within the prepaid space.

One weak spot during the second quarter was T-Mobile's prepaid business, which only saw 94,000 new customers, potentially because of the Virgin plan.

Over the last few months, T-Mobile's competitors have rolled out their best-priced plans in years: Verizon has a reasonable Unlimited plan, AT&T is more aggressive on the low-end plans, and even Sprint is offering a year of free Unlimited service.

The firm notes CEO John Legere taking a cautious stance on the prospect of merging with Sprint while still suggesting that a transaction between the two is viable.

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