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AT&T Stock Rises On Strong Wireless Subscriber Gains As Earnings Meet Estimates.

companies :: 1day ago :: source - ibd

By REINHARDT KRAUSE

The AT&T logo is pictured during the Forbes Forum 2017 in Mexico City, Mexico, September 18, 2017. REUTERS/Edgard Garrido/File Photo

AT&T (T) early Wednesday reported first-quarter earnings that met estimates while revenue edged by Wall Street targets. AT&T stock climbed amid wireless postpaid phone subscriber additions that beat expectations.

Reported before the market open, AT&T earnings were 51 cents, up 6% from a year earlier. Revenue rose 1% to $30.6 billion.

Analysts had projected AT&T earnings of 51 cents a share on revenue of $30.4 billion, according to FactSet.

Also, the company said it added 324,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 255,000 gain. In Q1 2024, AT&T added 349,000 wireless postpaid phone subscribers.

Verizon Communications (VZ) on Tuesday said it lost 289,000 wireless postpaid phone business and consumer subscribers, versus estimates for a loss of 197,000 subscribers.

AT&T Stock

On the stock market today, AT&T stock climbed 4.3% to 28.12 in early trading amid a broad rally. Heading into the AT&T earnings report, shares were up 19% in 2025, retaking their 50-day line on Monday.

Verizon stock was little changed early Wednesday. On Tuesday, shares initially tumbled rebounding for a 0.6% gain to 43.19, just below their 50-day moving average.

T-Mobile US (TMUS) inched higher in premarket trade, approaching its 50-day line within a base. TMUS stock gained 1.9% on Tuesday. T-Mobile will report on Thursday.

Also, some analysts view telecom firms as defensive plays as Donald Trump's tariff-based trade policies spark worries over a possible U.S. recession.

Free Cash Flow

In addition, AT&T reported Q1 free cash flow of $3.1 billion, slightly below estimates of $3.17 billion. Free cash flow growth supports AT&T's dividend.

Meanwhile, AT&T has returned to its telecom roots, shedding satellite TV broadcaster DirecTV and WarnerMedia. The company expects the sale of its entire 70% stake in DirecTV to private equity firm TPG to close in mid-2025.

AT&T's March quarter free cash flow excluded DirecTV.

AT&T has refocused on  "convergence"— selling landline broadband and wireless services in product bundles. In Q1, AT&T said it added 261,000 fiber broadband subscribers, with consumer fiber broadband revenues rising 19% to $2.1 billion.

Also, AT&T plans to expand its own fiber-optic network to 30 million-plus homes and businesses by the end of 2025.

Heading into the AT&T earnings report, T stock had a Relative Strength Rating of 96 out of a possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.

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