AT&T Inc (NYSE: T)
AT&T announced mixed quarterly results before markets opened on Wednesday, a few months after acquiring Time Warner in a $85 billion deal.
The U.S. telecommunications giant fell short of Wall Street expectations for third-quarter earnings of $0.94 per share. However, revenue of $45.7 billion slightly edged FactSet’s expectations of $45.7 million.
Shares of the company were down 2.79% to $32.10 in premarket trading as of 7:40 a.m. ET. The stock has lost 15% since the beginning of the year.
T Earnings & Outlook
The company posted earnings of $4.7 billion, or $0.65 per share for the three months ended Sept. 30. During the same period in 2017, its earnings were $3.0 billion, or $0.49 per share. Earnings adjusted for one-time items were $0.90 per share.
Consolidated revenue during the quarter were $45.7 billion, representing a 15% increase from $39.7 billion in the same period last year. Analysts were expecting earnings of $0.94 per share on revenues of $45.4 billion, according to figures compiled by FactSet.
Wireless net additions in the U.S. and Mexico were 3.4 million and 907,000, respectively. AT&T maintained its 2018 adjusted earnings forecast at the high end of $3.50 per share.
AT&T CEO Comments
“I’m pleased with the progress we made on a number of fronts in the third quarter. Our U.S. wireless business is growing and it’s the single biggest contributor to our earnings and cash flow. Warner Media was immediately accretive in its first full quarter, contributing 5 cents to EPS, and our free cash flow grew by double digits,” commented Randall Stephenson, AT&T chairman and CEO.
“We’ve accomplished all this while staying focused on managing our debt portfolio. We’re on track to get to the 2.5x debt-to-EBITDA range by year-end 2019. And as we’re nearing completion of our fiber build and making pricing moves on video, we’re laying the foundation for stabilizing our Entertainment Group profitability in 2019. Across the business, I like our momentum and feel confident that we’re on track to deliver on our plans.”
AT&T, Inc. Company Profile
AT&T, Inc. is a holding company, which engages in the provision of telecommunications and digital entertainment services. It operates through the following business segments: Business Solutions, Entertainment Group, Consumer Mobility, and International.
The Business Solutions segment provides advanced IP-based services including Virtual Private Networks (VPN); Ethernet-related products; FlexWare, a service that relies on Software Defined Networking (SDN) and Network Functions Virtualization (NFV) to provide application-based routing, and broadband, collectively referred to as strategic services, as well as traditional data and voice products.
The Entertainment Group segment offers video, internet, voice communication, and interactive and targeted advertising services to customers located in the United States. The Consumer Mobility segment provides nationwide wireless service to consumers, and wholesale and resale subscribers located in the United States.
The International segment provides entertainment services in Latin America and wireless services in Mexico. The company was founded in 1983 and is headquartered in Dallas, TX. – CNN Money
