AT&T Rises With Positive Mobile, Broadband Subscriber Growth
Key Takeaways
- AT&T posted a mixed first-quarter earnings report Wednesday, missing revenue estimates but reporting additions to its mobile and internet subscriber base.
- The telecommunications giant said lower sales volumes and a nearly 8% year-over-year drop in its Business Wireline segment hurt its total revenue.
- AT&T affirmed its full-year guidance, projecting wireless service and broadband revenue to grow 3% and 7%, respectively.
AT&T (T) shares jumped in premarket trading Wednesday following the release of a mixed first-quarter earnings report that saw the telecommunications giant miss revenue estimates but report additions to its mobile and internet subscriber base.
The company reported $30.03 billion in total revenue, shy of the $30.54 billion analysts expected, according to estimates compiled by Visible Alpha, as lower sales volumes and a 7.8% year-over-year revenue decrease in its Business Wireline division dragged AT&T’s top line.
Diluted earnings per share (EPS) of 47 cents fell short of expectations of 51 cents per share. However, adjusted EPS of 55 cents per share topped the estimated 54 cents per share.
AT&T added 349,000 wireless phone subscribers, bringing its total mobile subscriber base to 71.6 million, along with 252,000 new subscribers for its AT&T Fiber internet service, both of which are lower than AT&T posted in the first quarter of 2023.
Full-year guidance for 2024 was also affirmed, with AT&T projecting 3% growth to its wireless service revenue, along with growth of at least 7% in broadband revenue. The company expects adjusted EPS from $2.15 to $2.25, below the $2.41 mark it reported in 2023, but AT&T said it expects adjusted EPS to grow in 2025.
AT&T continues a week filled with telecommunications earnings. Verizon (VZ) reported first-quarter results roughly in line with analyst estimates Monday, while T-Mobile (TMUS) reports on Thursday.
Shares of AT&T rose nearly 4% less than an hour before the opening bell after closing Tuesday at $16.50.
