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AT&T Stock Pops on Earnings Beat, Results Seen as Solid -Breaking


© Reuters. AT&T (T) Stock Pops on Earnings Beat, Results Seen as Solid

Shares of AT&T (NYSE:) are up nearly 1% in premarket trading after the telecommunications company reported Q1 revenue slightly above analysts’ expectations.

According to consensus, the Q1 revenues of AT&T were $38.1 billion. This beats estimates of $37.73 trillion. AT&T reported adjusted EPS of 77c, compared to the analyst consensus of 75c per share.

Operating revenue for the communications segment was $28.9 Billion, which is just below the $28.67B expected. The analyst estimate of $19.71 trillion was exceeded by $20.1 billion in mobility revenue.

The wireless postpaid net additions grew 17% YoY to 965,000, surpassing the 547,186 total. This was also more than the consensus estimate of 437,000.

Worldwide, there were 76.8million HBO Max and HBO subscribers. That’s an 12.8million increase year-over-year. Domestic HBO Max subscribers and HBO Max subscribers reached 48.6 millions, an increase of 4.4 million YoY.

“When excluding the impacts of WarnerMedia, Vrio, and Xandr for both quarters, standalone AT&T cash from operating activities was $7.7 billion, down $1.7 billion year over year.” the company said.

Goldman Sachs analyst Brett Feldman said AT&T delivered “solid” results.

“The most notable metric, in our view, was postpaid phone net adds of 691k, which beat our estimate of 600k and Visible Alpha Consensus Data of ~400k. This was also AT&T’s best 1Q result in more than a decade, which implies that the carrier’s subscriber growth momentum has not slowed from last year’s record pace,” Feldman wrote in a client note.

By Senad Karaahmetovic