T-Mobile US Inc (NASDAQ:TMUS) CEO Comments Misinterpreted

CEO Mike Sievert clarified that remarks made during the UBS conference were misunderstood, causing a stock drop.

Stock Movement

Shares rose 1% in premarket trading Tuesday after falling over 6% on Monday.

Comments on Q4 Expectations

Sievert mentioned that the fourth quarter is "back-end loaded," indicating that revenue may be more concentrated at the quarter's end. He referenced potential risks during this period, causing market uncertainty.

Clarification from Sievert

In a Tuesday statement, Sievert emphasized, “My comments explaining normal seasonal trends in Q4 were misinterpreted by one media outlet as a warning.” He assured investors that Q4 is aligned with prior expectations or could even perform better. The company aims for 3 million postpaid phone net additions this year, bolstered by a strong Q3.

Q3 Performance

In Q3, T-Mobile added 865,000 mobile subscribers, exceeding analysts' predictions. This prompted the company to adjust its full-year growth projections upwards, estimating between 5.6 million and 5.8 million net customer additions.

Earnings Forecast

T-Mobile also updated its core adjusted earnings forecast for the year, predicting earnings before interest, taxes, depreciation, and amortization between $31.6 billion and $31.8 billion.

Fixed-Wireless Growth

Sievert noted that T-Mobile’s fixed-wireless service is progressing, with a goal of reaching 12 million subscribers and questioning if they can exceed that number.