AT&T Reports 3Q24 Financial Results
AT&T Inc. announced its financial results for the third quarter of 2024, showcasing continued progress in its mobility service and broadband segments.
Key Financial Metrics
| Metric | 3Q24 | 3Q23 | YoY Change | Consensus Estimates (3Q24) |
|---|---|---|---|---|
| Total Revenue | $30.2 billion | $30.4 billion | -0.5% | $30.44 billion |
| Diluted EPS (GAAP) | $(0.03) | $0.48 | N/A | N/A |
| Adjusted EPS | $0.60 | $0.64 | -6.3% | $0.57 |
| Operating Income | $2.1 billion | $5.8 billion | -63.8% | N/A |
| Adjusted Operating Income | $6.5 billion | $6.5 billion | 0% | N/A |
| Net Income | $0.1 billion | $3.8 billion | -97.4% | N/A |
| Adjusted EBITDA | $11.6 billion | $11.2 billion | +3.6% | N/A |
Interpretation: The company slightly missed its revenue target, primarily due to reduced Business Wireline and Mobility equipment revenues. Despite a decline in net income, AT&T managed to improve its adjusted EBITDA, reflecting efficient cost management and operational adjustments.
Segment Revenue Performance
| Segment | Revenue (3Q24) | YoY Change | Guidance Comparison |
|---|---|---|---|
| Mobility | $16.5 billion | +4.0% | In line with expectations |
| Consumer Broadband | $2.8 billion | +6.4% | Exceeded 7%+ growth target |
| Business Wireline | N/A | -11.8% | Underperformed, high-teens |
Interpretation: Mobility and Consumer Broadband segments exhibited substantial growth, aligning with the company's strategy to expand in 5G and fiber connectivity. However, the Business Wireline segment continued to face challenges amid declining legacy service demand.
Key Developments and Operational Highlights
- Increased high-quality converged customers in both 5G and fiber despite natural disruptions.
- 403,000 postpaid phone net adds with industry-leading churn of 0.78%.
- Achieved 226,000 AT&T Fiber net adds.
Comments from Company Officers
'AT&T’s performance in the third quarter underscores our leadership in the connectivity space,' stated CEO John Stankey . He highlighted the company's ability to overcome natural adversities while maintaining strong operational growth. John reaffirmed confidence in maintaining full-year financial guidance.
Forward Guidance
AT&T maintained its full-year guidance with expectations of 3% wireless service revenue growth and 7%+ broadband revenue growth. The capital investment range is projected between $21-$22 billion, aligning with ongoing strategic investments.
Stock Price Movement
Post-announcement, AT&T’s stock price experienced a decline of approximately 2.74%.
In conclusion, AT&T's third-quarter results reflect strong strategic execution in mobility and broadband growth, though challenges remain in addressing legacy service declines.
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