Key Takeaways
- Additional postpaid telephone subscribers came successful astir treble expert predictions and astatine the highest complaint successful astir 10 years.
- When further postpaid telephone subscribers are affirmative for a period, it means that AT&T is adding much postpaid telephone subscriptions than are being terminated.
- AT&T expects full-year adjusted EPS to beryllium astatine the precocious extremity of the low- to mid-single-digit maturation range.
| Metric | Beat/Miss/Match | Reported Value | Analysts' Prediction |
| Adjusted EPS | Beat | $0.87 | $0.79 |
| Revenue | Miss | $39.9B | $41.2B |
| Additional Postpaid Phone Subscribers | Beat | 928K | 521.1K |
Source: Predictions based connected analysts' statement from Visible Alpha
AT&T (T) Financial Results: Analysis
AT&T Inc. (T) reported Q3 FY 2021 results that were mixed comparative to expert expectations. Adjusted earnings per share (EPS) climbed by 14.5%, coming successful good supra statement estimates. On the different hand, gross declined by 5.7% twelvemonth implicit twelvemonth (YOY) and fell abbreviated of expert expectations. The institution attributed the gross show to the July separation of the U.S. video concern and different divested businesses, offset by higher revenues successful AT&T's Mobility and WarnerMedia businesses. The information that WarnerMedia gross maturation helped to mitigate gross declines wide suggests that AT&T volition person an uphill conflict to support consolidated gross show erstwhile the institution completes the spinoff of WarnerMedia successful mid-2022.
AT&T (T) Additional Postpaid Phone Subscribers
AT&T crushed expert predictions for postpaid telephone subscribers nett adds, reporting 928,000 compared with estimates of 521,100. CEO John Stankey said that it was the champion 4th successful this country successful much than 10 years. Additional postpaid telephone subscribers correspond a cardinal metric indicating the nett quality betwixt the fig of caller postpaid telephone subscriptions added during the 4th and the fig of subscriptions that were terminated. As agelong arsenic this metric is positive, it means that AT&T is adding to the full fig of postpaid telephone subscriptions.
Adding caller telephone subscriptions has go progressively important recently, arsenic AT&T has been divesting of definite businesses successful bid to absorption connected its halfway wireless and broadband communications operations. The antecedently mentioned divestment of WarnerMedia, announced successful May, volition impact combining that concern with Discovery, Inc. (DISCA) successful a merger woody that, if approved, could beryllium worthy $43 billion.
AT&T (T) Outlook and Stock Performance
AT&T said that it expects full-year adjusted EPS to travel successful astatine the precocious extremity of the low- to mid-single-digit maturation range. It expects to beryllium connected way to execute its free currency flow people of astir $26 billion. The institution besides anticipates gathering the higher extremity of its end-of-year HBO Max/HBO planetary people of betwixt 70 cardinal and 73 cardinal subscribers.
AT&T shares were up astir 1.5% successful pre-market trading pursuing the net release. Overall, the company's banal has importantly lagged the broader market, providing one-year trailing total returns of 4.0% arsenic compared with 31.8% for the S&P 500.
AT&T's adjacent net study (for Q4 FY 2021) is estimated to beryllium released connected Jan. 25, 2022.
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