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AT&T Shares Surge 4.6% Amid Revenue Challenges and Surpassing Earnings Expectations

Mover TrackerWednesday, Oct 23, 2024 6:31 pm ET

1min read

On October 23, shares of AT&T (T) experienced a significant rise of 4.60%. This rebound comes after hitting the lowest point seen since September 2024, while also reaching the highest levels since January 2023 within the same day, indicating notable volatility in the market.

AT&T's financial results revealed a challenging third quarter, with total revenue dropping to $302 billion, marking a 0.7% decline compared to expectations of $304.5 billion. The company's net income also saw a sharp decrease, down 43.76% from the previous year, settling at $68.68 billion by September 2024. Despite these declines, AT&T surpassed earnings expectations with an adjusted EPS of $0.60, above the anticipated $0.57.

In addition, the company's free cash flow for the quarter amounted to $51 billion, only a slight decrease from the previous year's with expectations set at $46.9 billion. This reflects some resilience in cash management amidst revenue pressures.

The telecom giant continued with stock buybacks throughout the third quarter, repurchasing roughly $2.02 billion. This move highlights a strategy to maintain shareholder value despite facing revenue challenges.

AT&T maintained its forecast for capital expenditures between $210 billion and $220 billion, contrasting with market predictions of $186.3 billion. The company also reaffirmed its adjusted EPS outlook between $2.15 and $2.25.

Subscriber growth also provided a positive aspect, with a net addition of 403,000 postpaid wireless phone users from July to September, surpassing analyst projections.

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