AT&T Inc. reported strong Q4 earnings, beating estimates, and announced AI investments and plans to return over $40 billion to shareholders. The company showed solid operating performance with notable growth in mobility and broadband revenues, despite limited overall revenue growth. AT&T's outlook for 2025 includes modest revenue growth, potential margin expansion, and substantial shareholder returns, though the stock is now fairly to slightly overvalued.
AT&T Inc.'s stock surged 6.3% after surpassing Q4 2024 revenue and earnings expectations, with strong growth in key segments and optimistic 2025 guidance. Mobility and Consumer Wireline segments showed robust performance, driving revenue growth despite declines in Business Wireline, with significant increases in subscribers and ARPU. Profitability improved, with net profits nearly doubling and operating cash flow rising, although adjusted operating cash flow saw a slight decline.
AT&T Inc T reported upbeat fourth-quarter revenues and earnings on Monday, and analysts quickly provided their commentary.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Telecom giant AT&T (T 0.27%) beat expectations on all fronts when it reported its fourth-quarter results on Monday. There was a lot for investors to like.
Amid a tech-sector selloff sparked by the emergence of Chinese startup DeepSeek and its free AI offering, AT&T (NYSE: T) defied the downturn on Monday, climbing 6% after delivering strong fourth-quarter results.
Dividend sustainability concerns have weighed on AT&T (T 6.25%) in recent years. The telecom giant had previously cut its payout by nearly 50% in 2022 to retain additional cash to invest in its network and reduce debt.
Both Verizon and AT&T have delivered outperforming Q4 results and positive outlooks. This has underpinned fundamental-driven share appreciation, which deviates from historical trends of Treasury-yield-linked volatility. But protracted uncertainties to the interest rate backdrop are likely bound to keep macro-led share volatility the theme in 2025 for both AT&T and Verizon. Looking ahead, we believe macro-led share volatility will again present opportunities for income-focused investors to lock-in on attractive dividend yields.
AT&T (T 6.34%) stock is seeing big gains in Monday's trading despite a bearish backdrop for the broader market. The company's share price was up 7% as of 3:15 p.m.
Goldman Sachs analyst James Schneider maintained a Buy rating on AT&T Inc T with a price target of $28.
AT&T Inc. (NYSE:T ) Q4 2024 Earnings Conference Call January 27, 2025 8:30 AM ET Company Participants Brett Feldman - SVP, Finance & IR John Stankey - CEO Pascal Desroches - CFO Conference Call Participants John Hodulik - UBS David Barden - Bank of America Michael Rollins - Citi Benjamin Swinburne - Morgan Stanley Peter Supino - Wolf Research James Schneider - Goldman Sachs Sebastiano Petti - JPMorgan Timothy Horan - Oppenheimer Operator Good morning, and welcome to AT&T's Fourth Quarter 2024 Earnings Call. At this time, all participants are in listen-only mode.
AT&T Inc.'s Q4 revenue beat expectations at $32.3 billion, driven by strong subscriber adds and low churn, with EPS surpassing estimates at $0.56 per share. Mobility revenues rose 3.3%, postpaid net adds were 839,000, and fiber saw a significant jump with 307,000 net adds, showing robust growth. Operating expenses were $27.0 billion, in line with expectations, and free cash flow was $4.8 billion, comfortably covering the dividend with a payout ratio of 43.8%.