AT&T (T) reported second-quarter earnings and revenue that beat Wall Street targets while wireless postpaid phone subscriber additions topped expectations. AT&T stock, which has advanced about 50% from a year ago, amid elevated expectations.
Further, AT&T earnings were 54 cents on an adjusted basis, excluding one-time items, up 3 cents from a year earlier. Revenue rose 3.5% to $30.8 billion.
Analysts had projected AT&T earnings of 53 cents a share on revenue of $30.46 billion, according to FactSet.
Also, the company said it added 401,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 302,000 gain. A year earlier, AT&T added 419,000 postpaid phone subscribers.
Meanwhile, AT&T reiterated 2025 guidance for adjusted earnings per share in a range of $1.97 to $2.07.
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AT&T said it expects $6.5 billion to $8.0 billion in cash tax savings between this year and 2027, due to new policies enacted by President Donald Trump’s recent tax-and-spending bill.
In addition, AT&T raised its free-cash-flow guidance and now expects cash flow in the low-to-mid $16 billion range for 2025, compared with the prior forecast of $16 billion-plus.
Meanwhile, AT&T has returned to its telecom roots, shedding satellite TV broadcaster DirecTV and Warner Media. The company in early July closed a deal to sell its stake in DirecTV to private equity firm TPG. AT&T’s June quarter free cash flow excluded DirecTV.
AT&T said it added 243,000 fiber internet customers in Q2, below FactSet’s estimate of 252,000.
AT&T has refocused on “convergence”— selling landline broadband and wireless services in product bundles. Also, AT&T said it has reached a goal to expand its own fiber-optic network to 30 million-plus homes and businesses.
