AT&T reported strong fourth-quarter results that exceeded Wall Street’s expectations. The company saw growth in both mobile phone customers and fiber-based internet subscribers. Revenue for the quarter was $32.3 billion, a 1% increase from the previous year.
This was slightly higher than what analysts had predicted. AT&T also added 482,000 new monthly mobile subscribers, which was more than the 442,000 that analysts had expected. Earnings per share came in at 54 cents, which was the same as the previous year.
The company’s performance was driven by seasonal promotions and bundled product offerings. These helped AT&T gain and retain profitable 5G and fiber subscribers. In the quarter, AT&T reported 482,000 postpaid phone net adds, compared to 526,000 a year ago.
Postpaid phone churn was 0.85%, versus 0.84% a year ago. The Consumer Wireline segment added 307,000 AT&T Fiber net adds, and the company reported 158,000 AT&T Internet Air net adds. AT&T’s adjusted EBITDA increased to $10.8 billion from $10.6 billion a year ago.
At&t posts strong Q4 growth
The company invested $6.8 billion in capital expenditures and achieved net income of $4.4 billion, up from $2.6 billion in the same quarter last year. Operating cash flow rose to $11.9 billion from $11.4 billion a year ago.
However, free cash flow decreased to $4.8 billion from $6.4 billion last year. Prepaid churn improved to 2.73% from 2.97% in the previous year. Postpaid phone-only ARPU increased by 0.9% year over year to $56.72.
For fiscal year 2025, AT&T provided guidance for consolidated service revenue growth in the low-single-digit range, mobility service revenue growth at the higher end of 2%-3%, and consumer fiber broadband revenue growth in the mid-teens. The company also expects adjusted EPS of $1.97 – $2.07 and full-year adjusted EBITDA growth of 3% or better. It anticipates full-year free cash flow, excluding DIRECTV, of $16 billion or more.
Following the earnings report, AT&T’s stock price increased by 2% to over $23 in early trading. This suggests a break above the 50-day moving average. The stock has a buy point of 24.03 from a flat base, and investors may view the pattern as a shallow double-bottom base with a 23.17 entry.
AT&T’s stock has a Relative Strength Rating of 80 out of 99. The company recently announced plans to generate over $50 billion in free cash flow over the next three years, with $20 billion allocated for stock buybacks.
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
