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.
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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
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