DALLAS - AT&T Inc. (NYSE:T) Chief Financial Officer Pascal Desroches is scheduled to speak at the Bank of America (NYSE:BAC) C-Suite TMT Conference on Tuesday, where he will provide an update on the company's progress toward its long-term growth strategy. Desroches is expected to highlight AT&T's ongoing investment in 5G and fiber networks, maintaining that the telecommunications giant is on track to meet its financial targets.
The company, which has been executing a connectivity-focused strategy, has seen steady customer growth and is driving additional investments to further benefit its business operations. AT&T's consistent marketing approach is reportedly resonating with customers, contributing to a sustainable model for growth and strong cash conversion.
AT&T's Mobility business is performing well in the second quarter, despite a lower year-over-year postpaid upgrade rate, aligning with recent trends. The company's Fiber penetration rates continue to surpass initial projections, with net adds fluctuating due to various factors such as seasonality and market dynamics.
The company's investment in connectivity infrastructure remains robust, with a capital investment expected to be in the $21-22 billion range for 2024. Over the past five years, AT&T has invested over $145 billion primarily in its wireless and wireline networks, including spectrum acquisitions.
AT&T's fiber network, which currently passes over 27 million consumer and business locations, is on pace to reach over 30 million by the end of 2025. The company is also exploring additional opportunities to expand its fiber reach within its existing footprint and through public-private partnerships.
In addition to its terrestrial networks, AT&T has entered a commercial agreement with AST SpaceMobile to work towards providing space-based broadband network connectivity to cell phones.
The company remains confident in its ability to meet the financial guidance provided in its April 2024 earnings report, including a net-debt to adjusted EBITDA ratio in the 2.5x range by the first half of 2025, and aims for over $2 billion in run-rate cost savings by mid-2026.
The webcast of Desroches' conversation will be accessible live and for replay via AT&T Investor Relations. This update is based on a press release statement.
In other recent news, AT&T has been a focal point of several significant developments. Congress member Carol Devine Miller sold shares in AT&T, among other companies, as disclosed in a recent congressional trade report. In another development, AT&T, along with Comcast (NASDAQ:CMCSA) and Verizon (NYSE:VZ), is part of a telecommunications industry group challenging the reinstatement of net neutrality rules by the Biden administration.
AT&T CEO John Stankey has outlined a multiyear growth strategy at the 52nd Annual J.P. Morgan Global Technology, Media and Communications Conference. The strategy emphasizes expansion of 5G and fiber networks, with capital investments expected to be in the $21-22 billion range for 2024. This is part of a broader plan which has seen AT&T invest more than $145 billion into its networks over the past five years.
The Federal Communications Commission (FCC) has penalized AT&T for unauthorized sharing of customers' location information, imposing a fine of $57 million. This action was taken to hold carriers accountable for compromising customer privacy. Meanwhile, Barclays (LON:BARC) has upgraded AT&T stock from Equalweight to Overweight, setting a new price target at $20.00, highlighting the company's growth quality and execution improvements.
InvestingPro Insights
As AT&T Inc. (NYSE:T) continues to strengthen its position in the telecommunications sector, real-time data and analysis from InvestingPro offer valuable insights for investors monitoring the company's financial health and market performance. AT&T's commitment to expanding its 5G and fiber networks is a key component of its growth strategy, which aligns with its strong cash conversion and customer growth metrics.
The company's robust market capitalization of $128.13 billion underscores its significant presence in the industry. AT&T's P/E ratio, which stands at 12.78, reflects investor expectations of future earnings, and when adjusted for the last twelve months as of Q1 2024, it presents an even more attractive valuation at 8.58.
This is further complemented by a noteworthy dividend yield of 6.13%, demonstrating AT&T’s commitment to returning value to shareholders, as evidenced by its history of maintaining dividend payments for 41 consecutive years—an InvestingPro Tip that highlights the company's financial stability and investor-friendly approach.
InvestingPro also highlights AT&T's position as a prominent player in the Diversified Telecommunication Services industry, which may provide additional confidence to investors considering the company's strategic investments and market initiatives. Moreover, the company's share price trades near its 52-week high, at 96.8% of this threshold, signaling strong market confidence in its performance and future prospects.
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AT&T's financial journey is a testament to its strategic focus and operational execution. With the latest data and insights from InvestingPro, investors can stay informed on the company's progress and make well-rounded decisions in the dynamic telecommunications market.
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