Wednesday, 1 February 2023
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AT&T edges higher on ‘solid’ earnings beat By Investing.com

AT&T edges higher on 'solid' earnings beat

© Reuters. AT&T (T) edges higher on ‘solid’ earnings beat

By Sam Boughedda

AT&T (NYSE:) shares are gaining premarket Wednesday after it topped fourth quarter earnings expectations, driven by sustained momentum in customer additions.

The telecommunications business Q4 earnings of $0.61 per share, $0.04 better than the analyst estimate of $0.57. However, revenue came in below expectations at $31.34 billion versus the consensus estimate of $31.43B, but it increased 0.8% year-over-year.

The company’s revenue increase was driven by higher mobility, Mexico, and consumer wireline revenues, but it was impacted by lower business wireline revenues.

AT&T’s total wireless net adds were 6.4M, which includes 1.1M postpaid net adds.

“Our consistent go-to-market strategy and the simplicity of our offerings drove continued robust, high-quality wireless and fiber customer additions in the fourth quarter,” said John Stankey, AT&T CEO.

For FY23, AT&T expects adjusted earnings per share of $2.35 to $2.45.

Following the report, Goldman Sachs said AT&T reported “solid 4Q22 results that beat across all key financial metrics.”

“The company also provided 2023 guidance that is a little lower than we had expected for most financial metrics, but that we see as conservative based on the company’s operating momentum existing 2022. As such, we view this as a solid report and outlook and expect a positive initial reaction in the stock,” Goldman Sachs adds.

AT&T shares are trading 2% higher Wednesday, premarket.

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