AT&T (T) early Wednesday reported second-quarter earnings that topped estimates while revenue and wireless subscriber adds missed. But T stock rose as free cash flow beat Wall Street targets.
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Reported before the market open, June quarter adjusted earnings 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.
T Stock: Free Cash Flow Beats
AT&T said Q2 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 2.3% to 15.14. AT&T stock had retreated 19% in 2023 as of Tuesday’s market close.
In Q2, the company said it added 326,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 419,000 gain.
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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