AT&T Earnings, Free Cash Flow Top Estimates

AT&T (T) reported third-quarter earnings on Wednesday that topped estimates while revenue narrowly missed Wall Street estimates. AT&T stock popped on the Q3 earnings report, moving into buy territory, as free cash flow came up nicely.

As reported before the market opened, AT&T earnings for the September quarter fell 6% to 60 cents on an adjusted basis. Revenue from continuing operations fell 0.5% to $30.2 billion.

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Analysts had estimated AT&T earnings of 57 cents, down 11% from a year earlier. AT&T revenue was expected to be flat at $30.4 billion.

Wireless subscriber additions came in below estimates. During the quarter, the company said it added 403,000 postpaid wireless phone customers versus estimates of 435,000, according to FactSet.

Monthly billed, postpaid phone customers are the highest spending wireless customers.

In addition, AT&T added 226,000 landline broadband customers who receive fiber-optic network-based service.

AT&T Stock: Buyback Coming?

AT&T reported $5.1 billion in free cash flow vs. estimates of $4.3 billion. Free cash flow growth supports AT&T's dividend.

And, there is speculation that the telecom company could announce a buyback for AT&T stock as early as 2025.

Additionally, AT&T reiterated full-year 2024 financial guidance.

In the stock market today, AT&T stock popped 4.6% to close at 22.49. Shares fell 0.7% from Tuesday after mixed results Verizon Communications (VZ), but broke off its 50-day line intraday.

The wireless giant has 22.34 buy points from a 6%-deep flat base.

In 2024, shares are up 28% after AT&T reports earnings. AT&T stock is down 9% in 2023.

According to IBD Stock Check-Up, which headlines AT&T's earnings report, the shares own a Relative Strength Rating of 87 out of 87—a best-possible 99.

Follow Reinhard Krause on Twitter @reinhardtk_tech For updates on artificial intelligence, cybersecurity and cloud computing.

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