T Stock: AT&T Q3 Earnings, Surpassing Expectations and Growing Subscriber Base Propel Stock

AT&T Inc. (NYSE: T) demonstrated strong performance in its third-quarter earnings report, exceeding expectations in key financial areas despite facing a $4.4 billion goodwill impairment charge. The telecom giant posted adjusted earnings of 60 cents per share, beating analysts’ forecasts of 51 cents, although this represents a 6% decline year-over-year. Revenue for the quarter came in at $30.2 billion, slightly below the expected $30.4 billion. Notably, AT&T achieved impressive free cash flow of $5.1 billion, surpassing projections of $4.3 billion.

Subscriber growth was another highlight, with AT&T adding 403,000 postpaid phone subscribers, exceeding the anticipated 389,300. The company maintained a low postpaid churn rate of 0.78%, indicating effective customer retention. Additionally, AT&T gained 226,000 fiber broadband customers, albeit below the forecast of 252,000.

Mobility service revenue grew by 4% year-over-year, reaching $16.5 billion, underscoring the importance of its wireless segment. Looking ahead, AT&T reaffirmed its full-year guidance, expecting free cash flow between $17 billion and $18 billion and continued revenue growth in wireless and broadband services.

Following the earnings release, AT&T’s stock rose nearly 3% in premarket trading, reflecting investor confidence in the company’s robust cash flow and potential for stock buybacks in the coming year