‘We can set goals, beat them, and then raise them’

T-Mobile (TMUS) CEO Mike Sievert thinks his telecom giant could dial up more guidance lifts in the quarters ahead as it wrestles market share away from Verizon (VZ) and AT&T (T).

“Over two-and-a-half years ago at our analyst day, we laid out a strategy for this company that showcases that not only would we build the best network, we would have the resources to defend the best value, and we were going to go after massive under-penetrated segments where there’s lots of opportunity for T-Mobile,” Sievert told Yahoo Finance on Thursday moments after another earnings beat and guidance hike.

“This is a differentiated strategy, and what we have been delivering ever since then is remarkably consistent execution against that strategy,” Sievert added. “And that’s why we can set goals, beat them, and then raise them.”

T-Mobile CEO Mike Sievert is shown presenting at the company's analyst day with an image of telecom workers in the background.

T-Mobile CEO Mike Sievert outlines how the Un-carrier will extend its industry leadership during T-Mobile’s first-ever Analyst Day on Thursday, March 11, 2021, in Bellevue, Wash. (Stephen Brashear/AP Images for T-Mobile)

The company also stood up “record” low churn in the second quarter, or a low number of subscribers leaving the network for whatever reason.

Sievert added his team will continue to be aggressive in buying back stock given the performance of the business. The company’s $14 billion buyback plan concludes in September — and a new plan is expected due to the cash flow the business is throwing off, suggested Sievert.

“There is more opportunity in front of us,” Sievert added.

Still, T-Mobile stock fell 2% in after-hours trading as the company’s sales fell slightly short of consensus.

Here’s how T-Mobile’s quarter stacked up.

The earnings rundown

  • Net sales: -2% year over year to $19.2 billion vs. estimate of $19.38 billion

  • Adjusted EPS: $1.86 ($0.09 loss a year ago) vs. estimate of $1.72

  • Postpaid net additions: 1.6 million vs. 1.43 million estimated

  • Postpaid churn: 0.77% vs. 0.81% estimated

What else caught our attention: Full-year forward guidance

  • Postpaid net customer additions are expected to be between 5.6 million and 5.9 million. Prior guidance was for an increase of 5.3 million to 5.7 million.

  • Adjusted operating profits are seen in the range of $28.9 billion to $29.2 billion. Prior guidance was for a range of $28.8 billion to $29.2 billion.

What analysts were saying pre-earnings

“TMUS remains our top pick in the wireless space given the company’s strong operating performance, attractive market positioning (best brand, lower pricing, at least as good a network), and continued synergy benefits as TMUS wraps the Sprint integration, and we find the underlying FCF/share growth story very compelling.” — Vijay Jayant, Evercore ISI

Brian Sozzi is Yahoo Finance’s Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.

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