Shares of AT&T (T) gained in trading after the company reported strong Q4 results. The telecommunication giant reported adjusted earnings of $0.54 per share, above consensus estimates of $0.50 per share.
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Furthermore, the company’s revenues inched up by 0.9% to $32.3 billion in the fourth quarter. This surpassed Street estimates of $32 billion.
T’s Wireless Subscribers Got a Boost in the Holiday Quarter
AT&T surpassed expectations in the holiday quarter, adding 482,000 net monthly bill-paying wireless phone subscribers, exceeding analysts’ estimates of 424,550.
One reason for this strong performance lies in AT&T’s strategy of bundling high-speed fiber internet with wireless phone services, providing added value to customers. This approach paid off significantly in the fourth quarter, with the fiber business achieving 307,000 new customer additions, a substantial increase from 226,000 in the previous quarter. These results marked the company’s best fourth-quarter performance in fiber net additions.
The holiday season typically serves as a strong period for telecom operators, and AT&T leveraged this advantage effectively. As a result, seasonal factors such as Black Friday promotions, trade-in offers for new iPhones, and the Christmas gift-giving period played a pivotal role in boosting subscriber additions.
AT&T Reiterates FY25 Outlook
Looking ahead, the company expects adjusted earnings, excluding the contribution from its 70% stake in DirecTV, to be in the range of $1.97 to $2.07 per share in FY25, while revenues are likely to grow in the “low single-digit range.” For reference, analysts were expecting the company to report earnings of $2.16 per share.
Is AT&T a Buy, Sell, or Hold?
Analysts remain bullish about T stock, with a Strong Buy consensus rating based on 16 Buys and three Holds. Over the past year, T has increased by more than 30%, and the average T price target of $26.47 implies an upside potential of 16.5% from current levels. These analyst ratings are likely to change following AT&T’s results today.
