AT&T beat expectations for subscribers, total revenue and free cash flow in the fourth quarter. In this way, it is one of the few stocks linked to technology that rises strongly this Monday.
AT&T beat subscriber expectations last quarter, following the lead of Verizon Communications, which also reported superior results last week. The telephone company’s shares climbed more than 6% after the markets opened this Monday. It is worth remembering that this technology firm has its Cedear in the Buenos Aires plaza under the ticker $T.
For the fourth quarter, AT&T reported 482,000 net additions of postpaid phonesabove the 443,000 that analysts consulted by FactSet had projected. AT&T’s postpaid phone churn rate was 0.9%, a key indicator that measures a company’s ability to retain customers.
It should be noted that the stock is one of the few that rose in the technology sector this Monday, as some doubts about artificial intelligence shook the Wall Street indices.
AT&T’s balance sheet
Like Verizon, AT&T beat expectations for total revenue, although it was in line with consensus projections for wireless revenue. AT&T’s total revenue was $32.3 billion, compared to the $32 billion expected by analysts. Revenue from wireless services reached US$16.6 billion, representing an increase of 3.3% compared to the previous year.
AT&T also beat expectations on free cash flow, a key metric for its investors due to the company’s dividend commitments. During the fourth quarter, AT&T generated free cash flow of $4.8 billion, compared to the $4.6 billion expected by analysts.
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NYSE
The company maintains the forecasts presented at its investor day at the end of last year, which include an expectation of $16 billion in free cash flow by 2025, excluding DirecTV. Additionally, AT&T plans to begin share buybacks in the second half of the year, in line with its goal announced in December.
AT&T also showed increased momentum in its broadband business during the period, achieving 307,000 net new fiber subscriber additions.
Source: Ambito
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