AT&T (T) early Wednesday reported fourth-quarter earnings that missed Wall Street estimates while revenue topped. T stock fell as the AT&T earnings outlook for 2024 fell short.
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Reported before the market open, AT&T earnings for the December quarter fell 11% to 54 cents on an adjusted basis. Revenue from continuing operations rose 2.2% to $32 billion.
Analysts had projected AT&T earnings of 56 cents a share on revenue of $31.5 billion, according to FactSet. A year earlier, AT&T earned 61 cents a share on revenue of $31.3.
AT&T Stock: Free Cash Flow Tops Views
AT&T reported Q4 free cash flow of $6.4 billion vs. estimates of $6.07 billion. Free cash flow growth supports AT&T’s dividend.
Wireless subscriber additions came in above estimates. During the quarter, the company said it added 526,000 postpaid wireless phone customers, down from 656,000 in the year-earlier period.
According to FactSet, analysts had estimated a gain of 494,000 postpaid phone subscribers — customers with the highest monthly bills.
Verizon Communications (VZ) on Tuesday reported better-than-expected wireless subscriber growth.
In 2024, AT&T forecast adjusted EPS in a range of $2.15 to $2.25 versus consensus estimates of $2.46. AT&T said its profit outlook includes 17 cents in higher, 7 cents in lower other income due to declines in non-cash prior service credit amortization included in pension and postretirement benefits costs, 5 cents in lower capitalized interest and 3 cents in lower adjusted equity income.
On the stock market today, T stock slumped 4% to 16.50. The telecom stock had risen 2.4% so far in 2024. That includes Tuesday’s 3.1% gain heading into the AT&T earnings report, fueled by Verizon’s strong results. T stock fell 9% in 2023.
Heading into the AT&T earnings report, shares owned a Relative Strength Rating of only 53 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
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