Why AT&T (T) Shares Are Trading Higher Today - AT&T (NYSE:T)

  • AT&T Inc T reported third-quarter FY22 operating revenues of $30.00 billion, down 4.1% year-over-year, beating the consensus of $29.86 billion
  • The decline reflected WarnerMedia and other divestments.
  • Excluding the impact of the divestitures, operating revenues for standalone AT&T were up 3.1%, reflecting higher Mobility revenues.
  • In the Mobility segment, AT&T clocked 964 thousand postpaid net adds, 708 thousand postpaid phone net adds, and 108 thousand prepaid phone net adds. 
  • In Mobility, it saw a Postpaid churn of 1.01%, which increased from 0.92% last year. The Consumer Wireline segment had 338 thousand of AT&T Fiber net adds.
  • AT&T’s adjusted EBITDA of $10.71 billion was down from $10.80 billion a year ago. The company generated $3.8 billion in free cash flow. It spent $5.9 billion on Capex.
  • Prepaid churn was less than 3%, with Cricket substantially lower. Postpaid phone-only ARPU was $55.67, up 2.4% versus the year-ago quarter, due to pricing actions, higher international roaming and a mix shift to higher-priced unlimited plans.
  • Operating Income: Operating income declined to $6.0 billion from $6.2 billion a year ago.
  • Mobility segment operating income was up 7.2% Y/Y to $6.42 billion with a margin of 31.7%. Business Wireline segment operating margin was 15.6%.
  • Adjusted EPS of $0.68 beat the consensus of $0.61.
  • Outlook: AT&T expects to achieve wireless service revenue growth in the upper end of the 4.5% – 5%. It updated Mid-band 5G spectrum end-of-year target to more than 130 million people.
  • “We’re investing at record levels to enhance our 5G and fiber connectivity and to deliver the best experience available in the market,” said John Stankey, AT&T CEO. 
  • Price Action: T shares traded higher by 2.96% at $16 in the premarket on the last check Thursday.

Image and article originally from www.benzinga.com. Read the original article here.