AT&T Inc. (T) posted stronger-than-expected third quarter earnings Thursday, and boosted its full-year profit forecast thanks to a big gain in wireless subscribers helped in part by promotional plans linked to Apple (AAPL) iPhones.
AT&T said adjusted earnings for the three months ending in September were pegged at 68 cents per share, down 3% from last year but firmly ahead of the Street consensus forecast of 61 cents per share. Group revenues from its continuing operations, the company said, fell 4.1% to $30.04 billion, while the group's standalone mobility service revenues were pegged at $20.3 billion, up 6% from last year.
Around 708,000 post-paid wireless subscribers were added over the quarter, the company said, well ahead of the consensus forecast of around 530,000, while overall revenue figures reflect he spin-off of its media assets into Warner Bros. Discovery (WBD) earlier this year.
Looking into the second half of the year, AT&T reiterated its full-year free cash flow forecast of $14 billion, but lifted its mobility revenue growth guidance to the "upper end" of its prior forecast of between 4.5% and 5%. Full year earnings, A&T said, should rise to $2.50 per share, a 4 cents improvement from the upper end of its summer forecast.
“We’re investing at record levels to enhance our 5G and fiber connectivity and to deliver the best experience available in the market,” said CEO John Stankey. “Our results show our strategy is resonating with customers as we continue to see robust levels of postpaid phone net adds and approach 1 million AT&T Fiber net adds for the year.
“Our disciplined go-to-market approach is helping drive healthy subscriber growth with high-quality customers," he added. "We remain confident in our ability to achieve, or surpass, all our financial commitments for the year, while still investing to bring our customers the industry’s best services.”
AT&T shares were marked 10.14% higher in early Thursday trading to change hands at $17.14 each, a move that would trim the stocks six-month decline to around 12.3%.
