T Stock: AT&T Earnings, Free Cash Flow Beat Estimates As Wireless Subscriber Growth Slows

AT&T (T) early Wednesday reported second-quarter earnings that topped estimates while revenue growth missed. But T stock rose as free cash flow, a key metric, beat Wall Street targets.

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Reported before the market open, adjusted earnings for the June period came in at 63 cents, down 3% from a year earlier. Revenue from continuing operations edged up 0.9% to $29.9 billion.

Analysts had projected AT&T earnings of 60 cents a share on revenue of $30 billion, according to FactSet. A year earlier, AT&T earned 65 cents a share on revenue of $29.6 billion from continuing operations.

AT&T said free cash flow came in at $4.2 billion vs. estimates of $3.66 billion. Free cash flow growth supports AT&T’s dividend.

On the stock market today, T stock climbed 1.5% to near 15. AT&T stock had retreated 19% in 2023 as of Tuesday’s market close.

T Stock: Free Cash Flow Beats

During the quarter, the company said it added 326,000 postpaid wireless phone customers, down from 800,000 in the year-earlier period. AT&T had lowered expectations for second-quarter subscriber additions at a financial conference in June.

According to FactSet, analysts had estimated a gain of 342,000 postpaid phone subscribers.

Heading into the AT&T earnings report, shares owned a Relative Strength Rating of only 14 out of a best-possible 99, according to IBD Stock Checkup.

On Tuesday, Verizon Communications (VZ) reported better-than-expected earnings and wireless subscriber gains, but fell short on revenue.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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