AT&T (NYSE:T) has reported a successful third quarter with free cash flow reaching $5.2 billion, surpassing the consensus forecast of $4.8 billion. This result has led the company to raise its full-year outlook to $16.5 billion, up from the initial estimate of $16 billion. These figures are crucial for AT&T's substantial dividend and its 2023 targets, which have elicited mixed reactions from the company and Wall Street.
The telecom giant's Q3 revenue also exceeded expectations, hitting $30.4 billion. This figure surpasses last year's revenue of $30 billion and the FactSet consensus of $30.2 billion. However, net income attributable to common stock fell to $3.4 billion or 48 cents per share, down from last year's $6.0 billion or 79 cents per share. The decrease is attributed to factors such as a $600 million severance charge and an 8-cent per-share negative impact from lower pension credits.
Adjusted earnings per share were recorded at 64 cents, higher than the projected 62 cents. In addition, AT&T reported an adjusted EBITDA of $11.2 billion, added 550,000 total postpaid net additions, and increased its fiber subscribers by 296,000.
Phone average revenue per user saw a slight increase of 0.6% to $55.99 and total fiber subscribers exceeded 8 million. Looking forward, the company now anticipates at least 4% growth in adjusted EBITDA and noted 468,000 postpaid phone net additions.
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