On Thursday, AT&T ($T) released its third-quarter earnings before the market opened. The company’s earnings per share topped the estimates as the subscribers increased and rose close to 70 million. However, the revenue was less than expected.
- Net Revenue: $39.9 billion
- Adjusted EPS: $0.87
- Net Income: $5.9 billion
Other significant details:
- Diluted EPS of $0.82 compared to $0.39 in the year-ago quarter
- Cash from operations of $9.9 billion
- Capital expenditures of $4.7 billion; gross capital investment of $5.7 billion and cash content spend of $4.8 billion
- Free cash flow of $5.2 billion
CEO’s Statement:
“We continue to execute well in growing customer relationships, and we’re on track to meet our guidance for the year,” said John Stankey, AT&T CEO. “We had our best postpaid phone net add quarter in more than 10 years, our fiber broadband net adds increased sequentially, and HBO Max global subscribers neared 70 million. We also have clear line of sight on reaching the halfway mark by the end of the year of our $6 billion cost-savings goal.”
Analysts Estimate
Revenue fell 5.7% from a year earlier, reflecting the separation of the DirecTV business. Analysts’ forecasts were expecting the company’s revenue to be $40.6 billion. The adjusted earnings per share were estimated to be $0.78, but they beat the estimates and came out to be 87 cents.
Earning History
Consolidated revenues for the third quarter totalled $39.9 billion versus $42.3 billion in the year-ago quarter, down 5.7%, while the operating expenses were $32.8 billion versus $36.2 billion in the year-ago quarter. This quarter showed a little better performance than the previous quarters as the subscribers rose substantially.
The AT&T stocks traded positively and the bulls raced in the pre-market after the earnings were released.
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