AT&T Maintains FY Adj EPS View But Quarterly EPS May Vary From Historical Trends

(RTTNews) - AT&T's (NYSE:T) chief financial officer John Stephens said that the company has maintained its guidance for full-year adjusted EPS growth but that quarterly EPS may vary from historical trends, given the inclusion of results from WarnerMedia, which AT&T acquired in June 2018.

Stephens said that beyond current guidance, the company has opportunities to continue to generate strong free cash flow in the longer term.

Stephens has discussed about company's 2019 guidance and priorities at the Deutsche Bank Media, Internet and Telecom Conference.

Stephens said that the first-quarter wireless service margins and adjusted EPS will be impacted by a $200 million to $300 million increase in amortization of prior-year commissions.

Stephens noted that the company expects WarnerMedia results to be stronger in the second half of the year with higher sports programming costs in the first six months of the year.

Also, Stephens said, through February, 2018 equipment revenues exceeded 2019 levels by about $100 million year over year, but this is not expected to affect wireless profitability.