Thirds-quarter earnings for U.S. telecom T-Mobile beat Wall Street's expectations, pushing share prices higher in pre-market trading.
The fourth-largest U.S. mobile provider added more than 1 million customers over the quarter contributing to revenue of $6.69 billion, 9% higher than a year earlier. Analysts surveyed by Yahoo! Finance had expected $6.57 billion in revenue. Of the customers added, 643,000 were branded postpaid phone customers, a 64% increase on the same quarter 2012.
The company said strong subscriber growth and better-than-expected revenue is a result of its successful 'Un-carrier' strategy, which aims to present the brand as a customer-friendly alternative to rivals Verizon (VZ) and AT&T (T).
"We are fixing the things that drive customers crazy," said CEO John Legere in a statement. "Our momentum is great and we have confidence that we can continue to deliver sustainable and profitable growth."
Shares jumped 3.6% to $29.35 in pre-market trading. Year to date, the stock has climbed 71.6%.
Cognizant Technology spiked 4.2% to $90.50 before the bell, on the back of strong earnings. The IT services company reported earnings of $1.13 a share on $2.31 billion in revenue, up 21.9% year on year. The results easily beat analyst forecasts of $1.01 a share on revenue of $2.26 billion.
TheStreet Ratings team rates Cognizant Tech Solutions as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate Cognizant Tech Solutions (CTSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
- You can view the full analysis from the report here: CTSH Ratings Report
AOL climbed 3.9% to $40.21, after reporting strong revenue growth for the third quarter. The online media company reported earnings of 2 cents a share on revenue 6% higher than a year earlier to $561.3 million. While revenue beat estimates by $12.49 million, earnings per share were 91% lower than a year earlier due to restructuring costs.
TheStreet Ratings team rates AOL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate AOL INC (AOL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had subpar growth in net income."
- You can view the full analysis from the report here: AOL Ratings Report