AT&T Q4 Results Top Estimates; Backs FY25 Outlook

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(RTTNews) - Telecom giant AT&T, Inc. (T) reported Monday a net profit for the fourth quarter that nearly doubled from last year, primarily reflecting strong net adds in AT&T Fiber and postpaid phone subscribers. Adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also reiterated its adjusted earnings guidance for the full year 2025.

In pre-market activity on the NYSE, AT&T shares are trading at $23.25, up $0.53 or 2.34 percent.

"The strong results this quarter are the result of a four-plus-year period of hard work and consistent execution by our teams, which has positioned us well for a new era of growth," said John Stankey, AT&T CEO.

For the fourth quarter, net income attributable to common stock surged to $4.03 billion or $0.56 per share from $2.14 billion or $0.30 per share in the prior-year quarter.

Excluding other items, adjusted earnings for the quarter was $0.54 per share, compared to $0.54 per share in the year-ago quarter.

AT&T's operating revenues for the quarter edged up 0.9 percent to $32.30 billion from $32.02 billion in the same quarter last year, primarily reflecting higher Mobility service and equipment revenues and Consumer Wireline revenues, partially offset by declines in Business Wireline and Mexico.

On average, analysts polled expected the company to report earnings of $0.51 per share on revenues of $31.94 billion for the quarter. Analysts' estimates typically exclude special items.

The company reported 482,000 postpaid phone net adds with an expected industry-leading postpaid phone churn of 0.85 percent. It also had 307,000 AT&T Fiber net adds, with 200,000 or more net adds for 20 consecutive quarters.

Operating revenues for the communications segment edged up 1.1 percent to $31.14 billion from last year, reflecting increases in Mobility and Consumer Wireline revenues, which was nearly offset by a 10 percent decline in Business Wireline revenues.

Operating revenues for the Latin America segment were down 4.2 percent year-over-year to $1.04 billion, primarily due to unfavorable impacts of foreign exchange rates, partially offset by higher equipment sales and subscriber growth.

Looking ahead to fiscal 2025, the company continues to project adjusted earnings in a range of $1.97 to $2.07 per share on consolidated service revenue growth in the low-single-digit range.

The Street is looking for earnings of $2.18 per share on revenue growth of 1.25 percent to $123.61 billion for the year.

Additionally, the Company continues to expect the sale of its entire 70% stake in DIRECTV to TPG to close in mid-2025.

"We ended 2024 with strong momentum. Customers and shareholders can look forward to receiving even more value in 2025 as we expand the country's largest fiber network, modernize our wireless network, grow our business and begin share repurchases in the second half of the year," added Stankey.

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