NEW YORK (TheStreet) -- T-Mobile (TMUS) - Get Report announced higher-than-expected earnings for the 2016 third quarter earlier today, proving that it doesn't need to make a media acquisition like competitor AT&T (T) did over the weekend with its $85.4 billion deal with Time Warner (TWX), T-Mobile CEO John Legere said on CNBC's "Squawk Alley" on Monday morning.
AT&T announced its 2016 third quarter results over the weekend, along with the announcement of the deal.
"When you compare and contrast [our results] to what AT&T announced in their earnings, they're bleeding. They're needing to go and find new revenue streams," Legere said when asked if he would consider a similar deal.
AT&T lost 268,000 mainstream wireless subscribers in the U.S. for the 2016 third quarter. T-Mobile announced this morning that it added 2 million net subscribers during the 2016 third quarter, he noted.
"So we're at very different spots. We even raised our guidance. It's a beautiful set of results and sets the stage for us to do a tremendous amount of things innovatively without having to use our balance sheet to buy a movie studio," Legere said.
In fact, this new deal will actually end up benefiting T-Mobile, he claimed.
"I find this highly exciting from a T-Mobile standpoint. They're going to be highly distracted. They already donate 50% of all my customer growth," Legere said.
In addition, if T-Mobile ever wanted to go a similar route, it wouldn't have to buy a media company like AT&T did, he noted. AT&T spent billions to buy Mexican carriers Iusacell from Grupo Salinas and Nextel Mexico, while T-Mobile simply partnered with Mexican carriers like Telefonica (TEF) and Telcel to offer the same services, he said.
"You don't always have to own and control and use your balance sheet. So I can certainly do a lot of what they do," Legere explained.
T-Mobile will be bigger than AT&T within five years, partly due to this deal accelerating its growth, he said.
Before today's opening bell, T-Mobile announced earnings of 27 cents per share, beating analysts' estimates of 21 cents per share. Revenue rose by 17.8% year-over-year to $9.2 billion, but fell short of analysts' estimates of $9.5 billion.
Over the weekend, AT&T reported earnings of 74 cents per share, which was in line with analysts' estimates. Revenue rose by 4.6% year over year to $40.89 billion, but missed analysts' expectations of $41.15 billion.
Shares of T-Mobile were surging by 7.35% to $50.19 in early afternoon trading on Monday, while shares of AT&T and Time Warner were lower.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates T-Mobile as a Buy with a ratings score of B. This is driven by a few notable strengths, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers
You can view the full analysis from the report here: TMUS