Dallas, Texas – AT&T reported first-quarter earnings on Wednesday that surpassed expectations but saw a slight dip from the previous year. The company’s revenue fell slightly below estimates, but AT&T stock saw an increase as wireless subscriber and free cash flow growth exceeded projections.
Before the market opened, AT&T announced adjusted earnings of 55 cents per share for the quarter ending in March, an 8% decrease from the same period last year. Revenue from continuing operations dropped 0.5% to $30 billion.
Analysts had anticipated earnings of 53 cents per share and revenue of $30.5 billion, according to FactSet. This compares to 60 cents per share and $30.1 billion in revenue from continuing operations in the first quarter of the previous year.
In morning trading on the stock market, AT&T stock rose 2.9% to $16.98. The company reaffirmed its outlook for 2024, which includes growth expectations in various sectors such as wireless service revenue, broadband revenue, adjusted EBITDA, and free cash flow.
AT&T revealed that its first-quarter free cash flow reached $3.1 billion, surpassing estimates of $2.4 billion. The company added 349,000 postpaid wireless phone customers during the quarter, exceeding Wall Street’s expectations.
Furthermore, AT&T experienced a lower rate of subscriber churn, with fewer wireless customers switching to other service providers compared to previous years. The company remains focused on maintaining customer satisfaction, as evidenced by offering compensation to customers affected by a recent wireless services outage.
Overall, despite the slight dip in earnings and revenue, AT&T’s performance in the first quarter showcased promising growth in key areas, including wireless subscribers and free cash flow, indicating a positive trajectory for the company moving forward.