AT&T Slips To Q3 Loss, Adj. EPS Tops Market, Backs FY24 View; Stock Up In Pre-market

(RTTNews) - Telecom giant AT&T, Inc. (T), while reporting a loss in its third-quarter on charges and slightly lower revenues, on Wednesday reiterated its fiscal 2024 adjusted earnings guidance. The third-quarter adjusted earnings, however, beat market estimates.

In pre-market activity on the NYSE, AT&T shares were gaining around 2.8 percent to trade at $22.10.

For fiscal 2024, the company continues to project adjusted earnings in a range of $2.15 to $2.25 per share on wireless service revenue growth in the 3 percent range and broadband revenue growth of 7 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.20 per share on revenue growth of 0.2 percent to $122.64 billion for the year. Analysts' estimates typically exclude special items.

Adjusted EBITDA growth is still expected in the 3 percent range.

The company further said it is on track to pass 30 million-plus consumer and business locations with fiber by the end of 2025.

In its third quarter, net loss attributable to common stock was $0.2 billion, compared to prior year's profit of $3.4 billion. Loss per share was $0.03, compared to profit of $0.48 in the year-ago quarter.

The latest results were hit by one-time items of $0.63 which included a non-cash goodwill impairment, its proportionate share of intangible amortization from the DIRECTV equity method investment, and other items.

Adjusted earnings per share were $0.60, compared to $0.64 in the year-ago quarter. The Street was looking for earnings of $$0.57 per share for the quarter.

Revenues for the third quarter totaled $30.2 billion, 0.5 percent lower than last year's $30.4 billion, while analysts expected $30.44 billion.

The revenue decline was due to lower Business Wireline service revenues and declines in Mobility equipment revenues driven by lower sales volumes. These decreases were mostly offset by higher Mobility service and Consumer Wireline revenues.

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