AT&T, the telecommunications giant, has exceeded analysts’ expectations with its third-quarter earnings and revenue. The company also raised its target for free cash flow for the year.
Revenue Growth and Profit Margin
In the third quarter, AT&T’s revenue rose by 1% to $30.4 billion compared to the same period last year. The adjusted profit stood at 64 cents per share, surpassing the projected revenue of $30.2 billion and adjusted earnings of 62 cents.
Investments in 5G and Fiber Connectivity Drive Growth
AT&T’s CEO, John Stankey, attributed the company’s growth to its investments in top-of-the-line 5G and fiber connectivity. These strategic initiatives have not only fueled their growth engine but have also allowed them to establish profitable customer relationships while improving operational efficiency.
Increased Guidance for Free Cash Flow and EBITDA
AT&T revised its guidance for free cash flow and earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year. The company now expects free cash flow to reach $16.5 billion, with a projected EBITDA growth of 4%. The previous guidance was set at $16 billion for free cash flow and 3% for EBITDA growth.
Strong Performance in Broadband Revenue
Furthermore, AT&T anticipates broadband revenue growth of 7% or higher for this year. This projection indicates a promising trend for the company in the broadband sector.
Robust Cash Flow and Better-than-Expected Results
Operating activities generated $10.3 billion in cash during the third quarter, representing a 2.4% increase. Additionally, AT&T’s free cash flow reached $5.2 billion, outperforming market expectations.
Positive Trends in Wireless Services
Steady Growth in Wireless and Broadband Revenue
AT&T shared impressive statistics, noting a growth rate of 4.6% in wireless service revenue and 8.1% in broadband revenue throughout the first three quarters of this year.
These strong performance indicators demonstrate AT&T’s dedication to continued growth and innovation in the telecommunications industry.