- EPS Achievement: AT&T reported an adjusted EPS of 60 cents, surpassing the estimate of 57 cents.
- Revenue Slightly Misses: Total revenue stood at $30.2 billion, a 0.7% decline year-over-year, short of the $30.45 billion estimate.
- Communications Segment: Operating revenue for this segment was $29.07 billion, slightly down by 0.6% year-over-year, and below the $29.29 billion estimate.
- Latin America Growth: Operating revenue in Latin America rose by 3% year-over-year to $1.02 billion, but did not meet the $1.08 billion estimate.
- Mobility Revenue Up: Mobility revenue increased by 1.9% year-over-year to $21.1 billion, falling just short of the $21.17 billion forecast.
- Adjusted Ebitda Surpasses Expectations: The adjusted Ebitda came in at $11.6 billion, exceeding the estimate of $11.38 billion.
- Free Cash Flow Decline: Free cash flow was $5.1 billion, marking a 1.9% decrease year-over-year but was higher than the estimate of $4.69 billion.
- Wireless Subscriber Growth: AT&T added 403,000 wireless postpaid phone subscribers, exceeding the estimate of 394,645.
- Fiber Net Adds Miss: There were 226,000 AT&T Fiber net additions, below the expected 265,390.
- Postpaid Phone Churn Rate: The postpaid phone-only churn rate was 0.78%, slightly better than the prior year’s 0.79% and close to the 0.77% estimate.
- Capital Expenditure Forecast Maintained: AT&T continues to project capital expenditure between $21 billion and $22 billion, exceeding the $18.63 billion estimate.
- EPS and Ebitda Outlook: The company maintains its adjusted EPS forecast of $2.15 to $2.25 and a 3% growth in adjusted Ebitda.
- Business Wireline Ebitda Decline: The full-year Business Wireline Ebitda is anticipated to decline within the high-teens range, compared to an earlier mid-teens forecast.
- Consumer Wireline Ebitda Growth: Growth in full-year Consumer Wireline Ebitda is expected within the mid-to-high-single-digit range.
- Goodwill Impairment Impact: The adjusted EPS excludes a ($0.61) impact due to a non-cash goodwill impairment in Business Wireline, related to faster industry declines.
- Cash from Operations Narrative: Operations cash flow remains stable, impacted by $480 million network modernization termination fees and reduced supplier financing obligations.
- Fiber Expansion on Track: The company remains on track to extend fiber coverage to over 30 million consumer and business locations by the end of 2025.
At&T Inc on Smartkarma
Analyst coverage of AT&T Inc on Smartkarma reveals a positive outlook from Value Investors Club and Baptista Research. Value Investors Club emphasizes AT&T’s strong market position, technological advancements, and capital return potential, identifying it as a compelling investment opportunity. Despite being undervalued, AT&T’s significant presence in Latin America and expected steady EBITDA growth reinforce its appeal to investors. On the other hand, Baptista Research‘s analysis of AT&T’s Q2 2024 earnings highlights the telecom giant’s expansion efforts in wireless and broadband sectors. With encouraging additions of high-value wireless and broadband subscribers, AT&T’s investment-driven growth strategy proves effective, demonstrating resilience amidst minor downshifts in other service areas.
Baptista Research‘s focus on AT&T’s consistent execution to drive up ARPUs further underscores the company’s progress on its connectivity provider strategy through 5G and fiber technologies. The First Quarter 2024 earnings report showcases AT&T’s growth in high-value wireless and broadband subscribers, particularly in the Mobility sector. With 349,000 postpaid phone net adds, reduced churn, and increased ARPU, AT&T exhibits robust operating income and margins, positioning itself favorably in the telecommunications industry.
A look at At&T Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
AT&T Inc. is receiving positive overall Smart Scores based on its key factors. With high scores in Dividend and Growth, the company is positioned well for the long term. Its strong Dividend score indicates stability and attractiveness for income-seeking investors, while the Growth score suggests potential for expansion and increasing value over time. These factors bode well for the company’s future performance.
However, AT&T Inc. is facing challenges in terms of Resilience, with a lower score in this area. This could indicate vulnerabilities in the company’s ability to withstand economic downturns or industry disruptions. Despite this, AT&T Inc. shows promising Momentum, reflecting positive market trends and investor sentiment that could drive the stock forward. Overall, with a mix of strengths and weaknesses, AT&T Inc.’s long-term outlook appears to be positive, albeit not without risks.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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