AT&T (NYSE: T) shares dropped almost 3% on Wednesday following the release of fourth-quarter earnings, which fell short of analyst expectations despite a revenue beat.
AT&T (T) reported adjusted earnings of 54 cents per diluted share, falling below the analyst consensus of 56 cents per share. This represents a decline from the 61 cents per share reported in the year-ago quarter. The company forecasts an adjusted EPS range of $2.15 to $2.25 for 2024 due to increased depreciation expense and other factors.
AT&T’s revenue rose 2.2% in the fourth quarter compared to the previous year, surpassing expectations at $32 billion.
The company’s free cash flow, which represents funds available for use after covering operating expenses, increased to $6.4 billion, compared to $6.1 billion for the corresponding period in 2022.
John Stankey, AT&T CEO, stated,
“We accomplished exactly what we said we would in 2023, delivering sustainable growth and consistent business performance, resulting in full-year free cash flow of $16.8 billion, ahead of our raised guidance.”
Key Metric
Net wireless subscriber additions stand as a crucial metric to monitor for AT&T. The company reported 5.9 million net additions for the quarter, outperforming analysts’ expectations of 5.4 million. Postpaid wireless net additions amounted to 526,000 for the quarter – higher than the prior quarter but lower than a year ago.
AT&T (NYSE: T) Stock Performance
T stock dropped 2.97% on Wednesday. The traders had exchanged hands with 78,198,500 (78.19 million) shares compared to the daily average trading volume of 36.89 million.
