AT&T Inc., the telecommunications giant, has exceeded expectations for free cash flow in its latest quarter while maintaining its full-year outlook on this metric. In the most recent quarter, the company generated $4.2 billion in free cash flow, surpassing the $3.7 billion that analysts had predicted. This positive result is a significant turnaround from three months ago when AT&T fell short of Wall Street’s forecasts. The company attributes the previous shortfall to misaligned expectations regarding its quarterly cadence.
Free Cash Flow Outlook
AT&T remains confident in its full-year performance and expects to achieve at least $16 billion in free cash flow.
AT&T’s revenue showed a slight uptick, reaching $29.9 billion compared to $29.6 billion in the previous period. Although analysts had anticipated revenue of $30.0 billion, the company still experienced a 4.9% increase in mobility service revenue and a 7.0% boost in broadband revenue.
Strong Financial Results
In terms of net income, AT&T reported $4.5 billion, or 61 cents a share, compared to $4.2 billion, or 57 cents a share, in the same quarter last year. Adjusted earnings per share stood at 63 cents, exceeding the FactSet consensus of 60 cents per share.
Moreover, AT&T’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $11.1 billion, up from $10.3 billion in the corresponding period the previous year. This outperformed the FactSet consensus of $10.7 billion.
Cost-Cutting Initiatives
AT&T is currently focused on cost-saving measures and recently announced that it achieved its run-rate cost-savings target of $6 billion ahead of schedule. The company now aims to eliminate an additional $2 billion in costs.
These developments highlight AT&T’s commitment to strong financial performance and growth within the telecommunications industry.
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