AT&T Inc. (T.US) released its Q4 2024 earnings report today, with shares rising over 6% in as results exceeded analyst expectations, driven by robust growth in both mobile phone customers and fiber internet subscribers. The company's performance reflects successful seasonal promotions and bundled product strategies, while maintaining its focus on network expansion.
AT&T delivered strong Q4 results with notable strength in both wireless and fiber segments, while maintaining its strategic focus on network modernization and expansion. The company benefited from increased subscriber growth across all major categories, exceeding analyst estimates.
AT&T Q4 2024 results:
- Revenue: $32.3 billion vs $32.03 billion expected (+0.9% YoY)
- Adjusted EPS: $0.54 vs $0.50 expected (flat YoY)
- Communications Segment Revenue: $31.14 billion vs $30.67 billion expected
- Mobility Revenue: $23.1 billion (+3.2% YoY)
- Adjusted EBITDA: $10.8 billion (+1.9% YoY)
- Free Cash Flow: $4.8 billion (-25% YoY)
- Capital Expenditure: $7.1 billion vs $5.86 billion expected
Subscriber Performance:
- Wireless postpaid net adds: 839,000 vs 619,662 expected
- Wireless postpaid phone net adds: 482,000 vs 441,511 expected
- AT&T Fiber net adds: 307,000 vs 265,604 expected
- Postpaid phone-only churn: 0.85% vs 0.83% expected
2025 Financial Outlook:
- Free Cash Flow: Expected to be at least $16 billion
- Capital Expenditure: Projected around $22 billion
- Adjusted EPS: Forecasted $1.97 to $2.07
- Adjusted EBITDA: Expected growth of at least 3%
- Service Revenue: Projected low-single-digit growth
- Consumer Fiber Broadband Revenue: Expected mid-teens growth
Strategic Initiatives:
CEO John Stankey emphasized the company's strong momentum entering 2025, highlighting plans to expand America's largest fiber network, modernize wireless infrastructure, and initiate share repurchases in the second half of the year. The company continues to execute on its strategic transformation, with the sale of its 70% stake in DIRECTV to TPG expected to close in mid-2025.
Analyst Perspectives:
- Scotiabank (Sector Outperform, PT $24) views the outlook as solid with good upside potential
- Evercore ISI (In Line, PT $25) notes healthy Q4 results with strongest net adds in over two years
- New Street Research (Buy, PT $32.50) highlights efficient subscriber acquisition compared to competitors
- Vital Knowledge characterizes the release as "boring but stable" amid growing AI market uncertainties
AT&T (D1 Interval)
The stock is currently approaching the early December 2020 high, with the next resistance level located at the May 2021 high of $24.84. Bears, on the other hand, will target the 50-day SMA at $22.79 and the 100-day SMA at $22.27 as key support levels to watch.
The RSI is entering the oversold zone, which could lead to either a cooling-off period or an uptrend continuation, as seen during the October to December 2022 period. Meanwhile, the MACD is showing a clear bullish divergence, suggesting the potential for continued upward momentum. Source: xStation
Daily summary: Wall Street tries to rebound 📈Amazon and Microsoft under pressure of Rotschild & Co Redburn
Home Depot shares slide 4% on outlook cut citing weakening consumption 📉
US Open: Wall Street indices under continued selling pressure 📌Technology stocks slide
Clouflare shares down in pre-market amid internet outage📌
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
