AT&T on Wednesday reported third-quarter earnings that topped estimates while revenue slightly missed Wall Street estimates. AT&T stock popped on the Q3 earnings report, moving into a buy zone, as free cash flow came in well above views.
Reported before the market open, AT&T earnings for the September quarter fell 6% to 60 cents on an adjusted basis. Revenue from continuing operations dipped 0.5% to $30.2 billion.
Analysts had projected 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.
Billed monthly, postpaid phone subscribers are the highest spending wireless subscribers.
Also, AT&T added 226,000 landline broadband customers that get fiber-optic network-based services.
AT&T Stock: Buyback Coming?
AT&T reported free cash flow of $5.1 billion versus estimates of $4.3 billion. Free cash flow growth supports AT&T's dividend.
And, there's speculation the telecom company could announce a buyback for AT&T stock for 2025.
In addition, AT&T reiterated full-year 2024 financial guidance.
On the stock market today, AT&T stock popped 4.6% to close at 22.49. Shares dipped 0.7% on Tuesday, following mixed results from Verizon Communications, but bounced off its 50-day line intraday.
The wireless giant has a 22.34 buy point from a 6%-deep flat base.
In 2024, shares had climbed 28% heading into the AT&T earnings report. AT&T stock fell 9% in 2023.
Heading into the AT&T earnings report, shares owned a Relative Strength Rating of 87 out of a best-possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
