AT&T on Wednesday reported second-quarter earnings that met estimates while revenue missed Wall Street estimates. But AT&T added more high-spending phone subscribers than expected and free cash flow rose nearly 10%, topping estimates. AT&T stock rose on the Q2 earnings report.
Reported before the market open, AT&T earnings for the June quarter fell 9% to 57 cents on an adjusted basis. Revenue from continuing operations dipped a fraction to $29.8 billion.
Analysts had projected AT&T earnings of 57 cents a share on revenue of $30 billion, according to FactSet. A year earlier, AT&T earned 63 cents a share on revenue of $29.9 billion.
Wireless subscriber additions came in above estimates. During the quarter, the company said it added 419,000 postpaid wireless phone customers versus estimates of 285,000.
Broadband, Wireless Product Bundle Clicking
Billed monthly, postpaid phone subscribers are the highest spending wireless subscribers.
Also, AT&T added 239,000 landline broadband customers that get fiber-optic network-based services.
"AT&T is leading the way in converged connectivity," said Chief Executive John Stankey in a statement. "Today, nearly four of every 10 AT&T fiber households also choose AT&T wireless service. As the nation's largest consumer fiber builder, we see this as an opportunity to continue to grow subscribers and revenues, while deepening customer relationships."
Further, the telecom company reiterated 2024 financial guidance for T stock.
Meanwhile, Verizon Communications on Monday also missed on Q2 revenue growth.
AT&T Stock: Free Cash Flow Tops Views
AT&T reported Q4 free cash flow of $4.6 billion, up nearly 10%, versus estimates of $4.05 billion. Free cash flow growth supports AT&T's dividend.
On the stock market today, AT&T stock popped 5.2% to 19.16. Shares had fallen 4.8% on Monday-Tuesday, sliding with Verizon.
In 2024, T stock had climbed 7% 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 only 76 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.
