AT&T Inc. (T) -) posted better-than-expected third quarter earnings Wednesday, while lifting its full-year free cash flow forecast and profit growth forecasts, as its aggressive moves to win new Apple iPhone customers adds to its top and bottom lines.
AT&T said adjusted earnings for the three months ending in September were pegged at 64 cents per share, down 5.9% from last year but just ahead of the Street consensus forecast of 63 cents per share.
Revenues, the company said, rose 1.2% from last year to $30.35 billion, just ahead of Street forecasts of $30.04 billion, while the group's free cash flow was pegged at $5.2 billion, firmly ahead of forecasts and a $1 billion quarter-on-quarter, amid the group's ongoing cost-cutting efforts.
Around 468,000 post-paid wireless subscribers were added over the quarter, the company said, topping Street forecasts of around 398,000, with around 296,000 net new fiber optic subscribers.
Looking into the current year, AT&T said it's on track to deliver adjusted earnings growth of around 4%, when compared to 2022 levels, a 1 percentage point improvement from its spring outlook, and sees free cash flow in the region of $16.5 billion, a $500 million increase from its prior forecast.
"Our investments in best-in-class 5G and fiber connectivity are fueling our growth engine," said CEO John Stankey. "We're gaining profitable customer relationships and becoming more efficient. This is powering our strong business performance and gives us the confidence to raise our full-year free cash flow guidance."
"We are pleased that customers are choosing AT&T and staying with us over the long run as we connect and simplify their digital world," he added.
AT&T shares were marked 6.75% higher in early Thursday trading following the earnings release to change hands at $15.28 each, a move that still leaves the stock down more than 22.4% for the past six months.
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