T-Mobile US, Inc. (TMUS) - Get Report reported better-than-expected first-quarter earnings Wednesday, its first report since completing its $23 billion acquisition of Sprint at the beginning of April.
The company, which won't report combined results with Sprint until next quarter, posted earnings per share of $1.11 on sales of $11.11 billion.
T-Mobile had been expected to report earnings of $1.03 a share, on sales of $11.4 billion, based on a FactSet survey of 18 analysts.
In the same period a year ago, the company posted earnings of $1.06 a share on sales of $11.1 billion.
Shares of T-Mobile rose 41 cents, or 0.5%, to $87 in after-hours trading after falling 2.7% in the regular session Wednesday.
The stock has risen 7.5% since the company last reported earnings on Feb. 6.
T-Mobile said in a statement it was unable to offer net income guidance for the second quarter because of ongoing uncertainty caused by the COVID-19 pandemic.
It said second-quarter COVID-19-related costs "are expected to be $450 to $550 million before taxes."
It forecast post-paid net customer additions between 0 and 150,000 during the current quarter, reflecting "the ongoing impact of COVID-19 including retail store closures and lower gross adds, partially offset by lower churn."
Adjusted EBITDA is expected to be between $6.2 billion and $6.5 billion in the second quarter.
"We are taking actions to adjust our spending given the significant uncertainty around the magnitude and duration of any recessionary impacts arising from the COVID-19 pandemic," the company said in the statement.
T-Mobile's acquisition of Sprint had been keyed to expanding its offerings of high-speed 5-G wireless networks.