Not all double beats are created equal. Just ask T-Mobile US $TMUS...
The wireless giant delivered a double beat this quarter, topping both revenue and EPS expectations.
Revenue hit $20.89 billion, and EPS came in at $2.58, both ahead of analyst estimates.
By the numbers, it was a clean win.
But the market had other plans...
Despite the strong report, T-Mobile stock got crushed, falling over 11%. This was the stock's worst earnings-day reaction in company history.
Why the disconnect?
Investors zeroed in on softer guidance for 2025, lingering concerns around customer growth momentum, and heavier competitive pressure in the wireless space.
Good results simply weren’t enough to outweigh growing forward-looking anxiety.
Strong fundamentals, terrible price action: not the combo bulls want to see.
When a name sells off this hard on good news, it’s a clear signal that something bigger is bothering the street.
This is the kind of stock that we want to sell.
So what else did we learn from Friday's earnings reactions? Let’s dive into the details.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
VeriSign $VRSN had the best reaction score after reporting mixed results.
The company reported revenues of $400M, which is what Wall Street expected, and earnings per share of $2.10, versus the $2.11 estimate.
T-Mobile US had the worst reaction score after reporting a double beat.
The company reported revenues of $20.89B, versus the $20.63B estimate, and earnings per share of $2.58, versus the $2.47 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
VRSN resolved a .com bubble base on the heels of its earnings report:
Verisign rallied 8% after this earnings report, and here's why:
The top and bottom lines are growing by mid-single digits, and the management team expects that to continue this year.
Total .com and .net domain name registrations, a key performance indicator, grew to 174.8 million, a 2.2% year-over-year increase.
They repurchased 1.1 million shares of common stock for $220M during the quarter.
This company doesn't care about tariffs, and the market loves it...
The stock decisively broke above the .com bubble peak and printed a fresh all-time high on the heels of this report.
We think this is the beginning of a brand-new primary uptrend.
If VRSN is above 258, the path of least resistance is higher for the foreseeable future.
TMUS had its worst earnings reaction ever:
T-Mobile US fell over 11% after this earnings report, and here's why:
Postpaid phone net customer additions were 495,000, down from 903,000 in Q4 2024 and also lower than some analyst expectations.
Selling, general, and administrative expenses increased 7% year-over-year, partly due to higher payroll and costs from the Mint Mobile and Ultra Mobile acquisitions.
Although they raised full-year guidance for several metrics, the midpoint of postpaid net customer additions guidance was unchanged.
Although the company beat Wall Street's top and bottom-line expectations, it missed a few key performance indicators.
This resulted in a bloodbath for the stock...
The price resolved a short-term distribution pattern and got crushed on Friday.
If TMUS is below 250, the path of least resistance is lower for the foreseeable future.
Thank you for reading.
- The Beat Report Team
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