AT&T Shares Surge 10% Following Strong Quarterly Report and Growth Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Strong Financial Report: AT&T's quarterly results revealed an addition of 421,000 postpaid phone users and 283,000 fiber subscribers, indicating significant progress in customer acquisition and reinforcing its market leadership.
- Rising Fiber Convergence Rate: CEO John Stankey noted that the proportion of fiber customers subscribing to wireless services increased by 200 basis points year-over-year to 42%, marking the fastest growth since tracking began, showcasing the advantages of fiber and 5G integration.
- Robust Customer Retention: AT&T's postpaid churn rate remained below 1%, effectively retaining existing customers despite promotional activities from competitors like Verizon and T-Mobile, which bolstered investor confidence.
- Cash Flow and Buyback Plan: The company anticipates generating $16.6 billion in free cash flow in 2024, projected to rise to over $21 billion by 2028, while also announcing a $10 billion stock buyback program to enhance shareholder returns.
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Analyst Views on T
Wall Street analysts forecast T stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for T is 28.27 USD with a low forecast of 20.00 USD and a high forecast of 33.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 25.130
Low
20.00
Averages
28.27
High
33.00
Current: 25.130
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AT&T's Subscriber Growth Drives 10% Stock Surge
- Significant Subscriber Growth: AT&T added 421,000 postpaid phone subscribers and 283,000 fiber subscribers in Q4, demonstrating the effectiveness of its bundled service strategy and solidifying its position in a competitive telecom market.
- Increased Fiber Convergence Rate: The convergence rate among AT&T's fiber customers who also subscribe to wireless services rose to 42%, up 200 basis points year-over-year, indicating substantial progress in integrating fiber and 5G services, which enhances customer retention.
- Strong Cash Flow: AT&T expects to generate $16.6 billion in free cash flow in 2024, projected to grow to over $21 billion by 2028, providing robust support for future shareholder returns.
- Stock Buyback Program: The company's board approved a $10 billion stock buyback program, coupled with a current 4.2% dividend yield, reflecting AT&T's commitment to shareholders and confidence in future growth.
Continue Reading
AT&T Shares Surge 10% Following Strong Quarterly Report and Growth Forecast
- Strong Financial Report: AT&T's quarterly results revealed an addition of 421,000 postpaid phone users and 283,000 fiber subscribers, indicating significant progress in customer acquisition and reinforcing its market leadership.
- Rising Fiber Convergence Rate: CEO John Stankey noted that the proportion of fiber customers subscribing to wireless services increased by 200 basis points year-over-year to 42%, marking the fastest growth since tracking began, showcasing the advantages of fiber and 5G integration.
- Robust Customer Retention: AT&T's postpaid churn rate remained below 1%, effectively retaining existing customers despite promotional activities from competitors like Verizon and T-Mobile, which bolstered investor confidence.
- Cash Flow and Buyback Plan: The company anticipates generating $16.6 billion in free cash flow in 2024, projected to rise to over $21 billion by 2028, while also announcing a $10 billion stock buyback program to enhance shareholder returns.
Continue Reading