AT&T Q1 Earnings Beat Estimates, Revenues Remain Flat Y/Y

AT&T Inc. (NYSE: T) reported modest first-quarter 2024 results, as solid wireless traction and customer additions were partially offset by lower demand for legacy voice and data services. The company recorded strong subscriber growth backed by a resilient business model and robust cash flow position, driven by a diligent execution of operational plans. AT&T expects to continue investing in key areas of 5G and fiber and adjust its business according to the evolving market scenario to fuel long-term growth.

Net Income

On a GAAP basis, AT&T reported net income of $3.4 billion or 47 cents per share compared to $4.2 billion or 57 cents per share in the year-ago quarter. The decline is primarily attributed to lower net sales and higher operating expenses year over year.
Excluding non-recurring items, adjusted earnings from continuing operations were 55 cents per share compared with 60 cents in the year-ago quarter. Adjusted earnings for the first quarter beat the Zacks Consensus Estimate of 53 cents.

Quarter Details

Quarterly GAAP operating revenues decreased marginally by 0.4% year over year to $30 billion, largely due to declining Mobility equipment sales and lower Business Wireline Revenues, mostly offset by higher Mobility Service, Mexico and Consumer Wireline revenues. The top line fell short of the consensus mark of $30.66 billion.
Adjusted operating income for the quarter was $6 billion compared with $5.97 billion in the prior-year quarter. This resulted in respective adjusted operating income margins of 20% and 19.8%. Adjusted EBITDA improved to $11 billion from $10.59 billion.
AT&T witnessed solid subscriber momentum with 389,000 post-paid net additions. This included 349,000 postpaid wireless phone additions. Postpaid churn was 0.89%, while postpaid phone-only average revenue per user (ARPU) increased 0.9% year over year to $55.57 due to improved international roaming, pricing actions …

Full story available on Benzinga.com