ATT Pref C ADR 2025 Q1 Earnings Strong Performance as Net Income Surges 25.1%
Wednesday, Apr 30, 2025 7:05 am ET
2min read AT&T Pref C ADR(TPRC) reported its fiscal 2025 Q1 earnings on Apr 29th, 2025. AT&T's results beat expectations with notable improvements in net income and EPS, reflecting solid operational execution. The company's guidance indicates steady growth, with adjusted earnings projected between $1.97 and $2.07 per share for fiscal 2025. Service revenue is expected to grow in the low-single-digit range, while Mobility service revenue is projected to be at the higher end of the 2% to 3% range. The company anticipates continued strong growth in consumer fiber broadband revenue, expecting mid-teens growth, and forecasts free cash flow to exceed $16 billion in 2025, with over $18 billion by 2027.
Revenue
AT&T Pref C ADR's total revenue grew by 2.0% to $30.63 billion in fiscal 2025 Q1, compared to $30.03 billion in the previous year. The Communications segment contributed $29.56 billion, while the Latin America - Mexico segment added $971 million. The Corporate and Other segment provided $95 million, aligning with at&t Inc.'s overall revenue figure of $30.63 billion.
Earnings/Net Income
AT&T Pref C ADR saw its EPS rise significantly by 29.8% to $0.61 in 2025 Q1 from $0.47 in 2024 Q1, demonstrating continued earnings growth. Net income also increased by 25.1%, reaching $4.69 billion compared to $3.75 billion in the prior year. Overall, the EPS reflects favorable performance and strong profitability.
Post-Earnings Price Action Review
The earnings report's impact on AT&T Pref C ADR stock price yielded mixed results. Revenue, though unspecified in backtest data, is inferred as crucial for financial health. Net income showed a 30% 3-Day win rate, indicating the stock price increases three days post-report about a third of the time, suggesting positive earnings can lead to short-term price appreciation. Diluted EPS had a 50% 10-Day win rate, implying higher appreciation potential due to its significance in profitability assessment. Despite a negative 3-Day return of -0.71%, the stock price showed a modest recovery with a 10-Day return of 0.16% and a 30-Day return of 0.61%, with a maximum 30-day return of 2.08%. Thus, while metrics like net income and EPS can enhance short-term appreciation, overall stock impact remains mixed. Investors should evaluate these alongside other factors in investment decisions.
CEO Commentary
"The strong results this quarter are the result of a four-plus-year period of hard work and consistent execution by our teams, which has positioned us well for a new era of growth," said John Stankey, AT&T CEO. He highlighted the strong net additions in AT&T Fiber and postpaid phone subscribers as key drivers of business performance. Stankey emphasized the company's strategic priorities, including the expansion of its fiber network and modernization of wireless infrastructure, which are essential for future growth. His tone reflected optimism, as he noted strong momentum heading into 2025 and the expectation of delivering greater value to customers and shareholders.
Guidance
AT&T projects adjusted earnings for fiscal 2025 in the range of $1.97 to $2.07 per share, with consolidated service revenue growth in the low-single-digit range and Mobility service revenue growth expected in the higher end of the 2% to 3% range. The company anticipates consumer fiber broadband revenue growth in the mid-teens and expects free cash flow to total more than $16 billion in 2025, with annual growth of approximately $1 billion leading to over $18 billion in 2027.
Additional News
On January 16, 2025, Argus Research upgraded at&t inc. Preferred Stock (NYSE:T.PRC) from Hold to Buy, signaling positive sentiment among institutional investors. Despite a slight decrease in the number of funds holding positions in T.PRC, the average portfolio weight dedicated to this stock increased by 1.10%. Notably, several ETFs adjusted their allocations, with iShares Preferred and Income Securities ETF reducing its shares slightly, while Global X U.S. Preferred ETF increased its holdings. This upgrade and shifts in fund positions reflect evolving investor strategies and confidence in AT&T's preferred stock performance amidst broader market dynamics.
Revenue
AT&T Pref C ADR's total revenue grew by 2.0% to $30.63 billion in fiscal 2025 Q1, compared to $30.03 billion in the previous year. The Communications segment contributed $29.56 billion, while the Latin America - Mexico segment added $971 million. The Corporate and Other segment provided $95 million, aligning with at&t Inc.'s overall revenue figure of $30.63 billion.
Earnings/Net Income
AT&T Pref C ADR saw its EPS rise significantly by 29.8% to $0.61 in 2025 Q1 from $0.47 in 2024 Q1, demonstrating continued earnings growth. Net income also increased by 25.1%, reaching $4.69 billion compared to $3.75 billion in the prior year. Overall, the EPS reflects favorable performance and strong profitability.
Post-Earnings Price Action Review
The earnings report's impact on AT&T Pref C ADR stock price yielded mixed results. Revenue, though unspecified in backtest data, is inferred as crucial for financial health. Net income showed a 30% 3-Day win rate, indicating the stock price increases three days post-report about a third of the time, suggesting positive earnings can lead to short-term price appreciation. Diluted EPS had a 50% 10-Day win rate, implying higher appreciation potential due to its significance in profitability assessment. Despite a negative 3-Day return of -0.71%, the stock price showed a modest recovery with a 10-Day return of 0.16% and a 30-Day return of 0.61%, with a maximum 30-day return of 2.08%. Thus, while metrics like net income and EPS can enhance short-term appreciation, overall stock impact remains mixed. Investors should evaluate these alongside other factors in investment decisions.
CEO Commentary
"The strong results this quarter are the result of a four-plus-year period of hard work and consistent execution by our teams, which has positioned us well for a new era of growth," said John Stankey, AT&T CEO. He highlighted the strong net additions in AT&T Fiber and postpaid phone subscribers as key drivers of business performance. Stankey emphasized the company's strategic priorities, including the expansion of its fiber network and modernization of wireless infrastructure, which are essential for future growth. His tone reflected optimism, as he noted strong momentum heading into 2025 and the expectation of delivering greater value to customers and shareholders.
Guidance
AT&T projects adjusted earnings for fiscal 2025 in the range of $1.97 to $2.07 per share, with consolidated service revenue growth in the low-single-digit range and Mobility service revenue growth expected in the higher end of the 2% to 3% range. The company anticipates consumer fiber broadband revenue growth in the mid-teens and expects free cash flow to total more than $16 billion in 2025, with annual growth of approximately $1 billion leading to over $18 billion in 2027.
Additional News
On January 16, 2025, Argus Research upgraded at&t inc. Preferred Stock (NYSE:T.PRC) from Hold to Buy, signaling positive sentiment among institutional investors. Despite a slight decrease in the number of funds holding positions in T.PRC, the average portfolio weight dedicated to this stock increased by 1.10%. Notably, several ETFs adjusted their allocations, with iShares Preferred and Income Securities ETF reducing its shares slightly, while Global X U.S. Preferred ETF increased its holdings. This upgrade and shifts in fund positions reflect evolving investor strategies and confidence in AT&T's preferred stock performance amidst broader market dynamics.
