AT&T Exceeds Earnings Expectations

First-Quarter Earnings Beat Analysts’ Predictions

AT&T reported first-quarter earnings that surpassed analyst expectations, with an EPS of $0.55, above the consensus estimate of $0.53. However, the company’s revenue fell slightly short at $30 billion, below the projected $30.53 billion.

Revenue Breakdown and Growth Trends

Total service revenues increased by $225 million, while equipment revenues decreased by $336 million. Mobility service revenues grew by 3.3%, and broadband revenues saw a 7.7% increase, driven primarily by expansion in fiber services.

Adjusted EBITDA and Future Projections

AT&T’s adjusted EBITDA for the quarter reached $11 billion, a 3.8% year-over-year increase, surpassing analysts’ expectations. The company reiterated its guidance for adjusted EPS for fiscal 2024 in the range of $2.15 to $2.25.

Key Highlights and CEO Statements

“Our results this quarter reflect continued strong growth in our Mobility and Consumer Wireline connectivity businesses, which represent about 80% of our total revenues,” said John Stankey, CEO of AT&T. “Customers are choosing AT&T and staying with us, leading to record-low churn and sustained growth in broadband and wireless services.”

AT&T noted that adjusted EPS included certain impacts such as higher depreciation, non-cash pension costs, and reduced equity income from DIRECTV. Despite challenges, the company remains optimistic about future prospects and continues to focus on innovation and customer retention.