While fellow telecom giant Verizon is struggling with subscriber losses, AT&T (T 0.85%) put up strong numbers in its first-quarter report Wednesday morning. Postpaid phone net adds topped 300,000, mobility service revenue jumped 4.1%, and the fiber business continued to grow at a blistering pace. The wireless industry faces headwinds from a potential economic slowdown and unpredictable tariff policies from the Trump administration, but it was largely business as usual for AT&T in the first quarter. Growth i ...

Core Viewpoint - AT&T's quarterly earnings report showed mixed results, with revenue growth but a muted investor reaction due to concerns over strategic direction amid macroeconomic challenges [1][4]. Financial Performance - AT&T reported $30.6 billion in revenue for the first quarter, a 2% increase from the same period in 2024, driven by growth in mobility and consumer wireline segments, but offset by declines in business wireline and operations in Mexico [2]. - The company's net income rose 25% to nearly $4.7 billion, with adjusted earnings per share at $0.51, an improvement from $0.47 in the first quarter of 2024, although slightly below the analyst consensus estimate of $0.52 [3]. Market Reaction - Despite the positive revenue and net income figures, AT&T's stock saw less than a 1% increase, contrasting with a nearly 2% gain in the S&P 500 index, indicating investor skepticism [1]. Strategic Challenges - The CEO acknowledged potential impacts from U.S. tariffs on foreign trading partners, which could lead to increased costs for hardware and related equipment, but did not provide a clear strategy for addressing these challenges [4][5]. Future Guidance - AT&T anticipates consolidated service revenue to rise by a low single-digit percentage over the 2024 results, with adjusted earnings per share projected between $1.97 and $2.07, slightly below the average analyst estimate of $2.09 [6].

Core Viewpoint - AT&T Inc. reported mixed first-quarter 2025 results, with adjusted earnings missing consensus estimates while revenues exceeded expectations [1][4]. Financial Performance - Net income on a GAAP basis was $4.39 billion, or 61 cents per share, compared to $3.39 billion, or 47 cents per share, in the same quarter last year, primarily due to higher contributions from DIRECTV investments [3]. - Adjusted earnings improved to 51 cents per share from 48 cents a year ago, but missed the Zacks Consensus Estimate by one cent [4]. - Quarterly GAAP operating revenues increased by 2% year over year to $30.63 billion, driven by higher Mobility service and equipment sales, as well as Consumer Wireline revenues, surpassing the consensus mark of $30.44 billion [4]. Subscriber Growth - AT&T experienced solid subscriber momentum with 290,000 post-paid net additions, including 324,000 postpaid wireless phone additions [6]. - Postpaid churn was 0.83%, and postpaid phone-only average revenue per user (ARPU) increased by 1.8% year over year to $56.56 [6]. Segment Performance - Communications segment operating revenues rose to $29.56 billion from $28.86 billion, with Mobility business revenues up 4.7% to $21.57 billion and Consumer Wireline revenues up 5.1% to $3.52 billion, despite a decline in Business Wireline revenues [7]. - Service revenues from the Mobility unit improved by 4.1% to $16.65 billion, while equipment revenues increased by 6.9% year over year to $4.92 billion [8]. - Revenues from the Business Wireline segment declined due to lower demand for legacy services, while total segment operating income improved by 3.6% to $6.99 billion [9]. Cash Flow and Liquidity - In Q1 2025, AT&T generated $9.05 billion in cash from operations, up from $7.55 billion a year ago, with free cash flow of $3.15 billion compared to $2.77 billion in the previous year [11]. - As of March 31, 2024, AT&T had $6.88 billion in cash and cash equivalents, with long-term debt of $117.26 billion, resulting in a net debt to adjusted EBITDA ratio of approximately 2.63X [11]. Guidance - For 2025, AT&T expects wireless service revenues to improve in the range of 2-3%, with broadband revenues anticipated to grow in the mid-teens [12]. - Adjusted earnings are projected to be between $1.97 and $2.07 per share, with free cash flow expected to exceed $16 billion due to cost savings [13].

Group 1 - AT&T exceeded Wall Street estimates for wireless subscriber additions in Q1, gaining 324,000 net monthly bill-paying wireless phone subscribers compared to the expected 258,300 [1] - The company's strategy of bundling high-speed fiber services with 5G mobile offerings and aggressive trade-in promotions contributed to this growth [1][3] - AT&T's total revenue increased by 2% to $30.6 billion, surpassing analysts' expectations of $30.35 billion [6] Group 2 - The company has seen a higher-than-expected trend in device upgrades since the announcement of reciprocal tariffs in early April, which may lead to increased demand in the second half of the year [3] - More than 40% of AT&T customers using fiber also opted for wireless plans, indicating a strong cross-selling opportunity [6] - AT&T plans to commence share repurchases in Q2 and has reaffirmed its free cash flow and adjusted profit forecasts for the year [7] Group 3 - In contrast, rival Verizon reported higher subscriber losses in Q1 due to recent price hikes and increased industry-wide promotions [8] - T-Mobile is expected to report its results after the market closes on Thursday, indicating ongoing competitive dynamics in the telecom sector [8]

Financial Data and Key Metrics Changes - In Q1 2025, total revenues increased by 2%, service revenues rose by 1.2%, and adjusted EBITDA grew by 4.4% [23] - Adjusted EPS was $0.51, up $0.03 from the previous year, excluding DIRECTV [24] - Free cash flow for Q1 was $3.1 billion, an increase of over $350 million year-over-year [25] Business Line Data and Key Metrics Changes - Mobility revenues increased by 4.7% year-over-year, with service revenues up by 4.1% [26] - The mobility segment saw 324,000 postpaid phone net adds, with postpaid phone ARPU growing by 1.8% year-over-year [27][30] - Consumer wireline revenue grew by 5.1%, driven by a 19% increase in fiber revenue [35] Market Data and Key Metrics Changes - The fiber network is expected to reach over 30 million locations by mid-2025, with a long-term goal of over 50 million by 2029 [10] - The company reported 261,000 fiber net adds, up from 252,000 in the same quarter last year [32] - Business wireline revenues declined by approximately 9% year-over-year, primarily due to pressures on legacy services [37] Company Strategy and Development Direction - The company focuses on being the largest converged provider of 5G and fiber, enhancing customer relationships [7] - Plans to commence share repurchases in Q2 2025, with a total authorization of $10 billion [46] - The company aims to maintain a net debt to adjusted EBITDA ratio in the range of 2.5 times [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 financial guidance despite a macro environment with diminished visibility [17] - The company is closely monitoring the impact of potential tariffs on costs and consumer demand [18] - Management highlighted the importance of maintaining flexibility in operations to adapt to changing economic conditions [129] Other Important Information - The company is making significant investments in fiber expansion and network modernization [10] - The first quarter results benefited from vendor settlements that positively impacted operating expenses by approximately $100 million [36] - The company has reduced net debt by about $1 billion, driven by strong free cash flow and asset sales [44] Q&A Session Summary Question: Impact of tariffs and growth environment - Management indicated that if tariffs increase handset costs, they would need to adjust their business model to support customers while maintaining profitability [52][54] - They are actively managing costs across the business, not just in consumer wireline, to adapt to a slower growth environment [58][60] Question: Acquisition talks and inorganic investments - Management refrained from commenting on specific acquisition rumors but remains open to opportunities that enhance shareholder value [67][70] Question: Higher upgrade rates and wireless margins - Management expects elevated upgrade levels in Q2, potentially impacting wireless margins positively [81] - They noted that price increases on legacy plans could lead to higher churn in subsequent quarters [84] Question: Fixed wireless access and broadband share - Management confirmed that network enhancements are expanding opportunities for fixed wireless access, which is expected to drive growth in broadband [90][96] Question: ARPU improvement opportunities - Management plans to continue finding opportunities to improve ARPU through enhanced product offerings and customer value [101][104]

AT&T (T) reported $30.63 billion in revenue for the quarter ended March 2025, representing a year-over-year increase of 2%. EPS of $0.51 for the same period compares to $0.55 a year ago.The reported revenue represents a surprise of +0.61% over the Zacks Consensus Estimate of $30.44 billion. With the consensus EPS estimate being $0.52, the EPS surprise was -1.92%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next m ...

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2025 1st Quarter Earnings April 23, 2025 AT&T Intellectual Property and/or AT&T affiliated companies. All other marks are the property of their respective owners AT&T Proprietary (Internal Use Only) - Not for use or disclosure outside the AT&T companies except under written agreement © 2025 AT&T Intellectual Property. AT&T and globe logo are registered trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. © 2025 AT&T Intellectual Property. AT&T and globe logo are regis ...

分组1 - AT&T reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share, and down from $0.55 per share a year ago, representing an earnings surprise of -1.92% [1] - The company posted revenues of $30.63 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.61% and up from $30.03 billion year-over-year [2] - Over the last four quarters, AT&T has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - AT&T shares have increased approximately 18.4% since the beginning of the year, contrasting with the S&P 500's decline of -10.1% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.54 on revenues of $30.27 billion, and for the current fiscal year, it is $2.14 on revenues of $123.94 billion [7] 分组3 - The Zacks Industry Rank indicates that the Wireless National industry is in the top 13% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for AT&T is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]

AT&T met earnings estimates and slightly exceeded revenue expectations in its Q1 2025 financial results.Telecommunications giant AT&T (T 2.49%) reported fiscal 2025 first quarter earnings on Wednesday, April 23, that matched or exceeded analysts' consensus expectations. Revenue of $30.63 billion came in ahead of the forecasted $30.36 billion and rose 2% year over year. Adjusted earnings per share (EPS) reached $0.51, aligning with market expectations. The first quarter showcased AT&T's focus on enhancing it ...