AT&T Subscriber Gains Boost Stock

AT&T (T) shares advanced Wednesday as the telecom giant posted strong subscriber numbers.

The company reported third-quarter postpaid phone net adds of 403,000, and “churn,” which measures the percentage of those who opt out of their contracts, of 0.78%. Both were better than consensus estimates of analysts polled by Visible Alpha. 

Adjusted earnings per share (EPS) came in at $0.60, and free cash flow was $5.1 billion. Both were also better than expected. However, revenue slipped less than 1% to $30.2 billion, short of forecasts.

The postpaid phone adds helped boost sales at the company’s Mobility segment by 1.7% to $21.05 billion. That was partially offset by an 11.8% drop to $4.61 billion in the Business Wireline unit, which has been struggling as companies pull back on legacy voice and data services.

CEO Touts Converged 5G, Fiber Connectivity Strength

Chief Executive Officer (CEO) John Stankey said the results show AT&T’s strength in converged 5G and fiber connectivity. “Despite severe weather and a work stoppage in the Southeast, this is our 19th straight quarter of adding more than 200,000 new AT&T Fiber customers,” Stankey added.

The company reiterated its full-year guidance of adjusted EPS of $2.15 to $2.25.

AT&T shares rose nearly 3% in recent trading and have added roughly 30% of their value in 2024.