AT&T Inc. Reports $30 Billion in Revenue and $0.55 EPS for Q1 2024

AT&T Inc. (NYSE: T) has reported its first-quarter results for 2024, showcasing a robust performance powered by its 5G and fiber growth initiatives. The telecommunications giant announced revenues of $30.0 billion and an adjusted EPS of $0.55, exceeding the EPS expectations of $0.5323. Operating income stood at $5.8 billion, with net income at $3.8 billion.

The company also highlighted a significant year-over-year increase in cash from operating activities, which rose by $0.9 billion to $7.5 billion. Capital expenditures were reported at $3.8 billion, leading to a free cash flow of $3.1 billion, showing a remarkable increase of $2.1 billion from the previous year. These figures underscore AT&T’s solid financial health and its ability to generate substantial cash flows, attributing the success to its strategic investments in 5G and fiber broadband services.

AT&T’s Q1 2024 Performance

The company’s performance this quarter has demonstrated strong growth in its core business areas and highlighted the effectiveness of its investment-led strategy.

AT&T reported 349,000 postpaid phone net additions and a record-low first-quarter postpaid phone churn of 0.72%, indicating strong customer retention and acquisition strategies.

Additionally, the company saw a significant increase in Mobility service revenues, which rose by 3.3% year over year to $16.0 billion, and Consumer broadband revenues, which grew by 7.7% to $2.7 billion. These results reflect AT&T’s continued focus on expanding its 5G and fiber network coverage, which now spans over 27.1 million consumer and business locations.

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AT&T Beats EPS Expectations in Q1, Falls Short on Revenue Slightly

Comparing the current performance against expectations, AT&T has surpassed the forecasted EPS of $0.5323 by reporting an adjusted EPS of $0.55.

However, the revenue fell slightly short of the expected $30.53 billion, coming in at $30.0 billion. Despite this minor shortfall in revenue expectations, the company’s overall financial health remains strong, with significant improvements in cash flow and sustained growth in its Mobility and broadband services.

The increased profitability and cash flow generation highlight AT&T’s successful execution of its strategic priorities, particularly its investments in 5G and fiber technologies, which continue to drive customer growth and retention.

AT&T Anticipates Adjusted EBITDA Growth in the 3% Range for Full Year 2024

AT&T has reiterated its full-year guidance, expressing confidence in its continued growth trajectory. The company expects wireless service revenue growth in the 3% range and broadband revenue growth of 7%+.

Additionally, AT&T anticipates adjusted EBITDA growth in the 3% range and plans to invest $21-$22 billion in capital expenditures to expand further and enhance its network. For free cash flow, the company projects a range of $17-$18 billion, with adjusted EPS expected to be in the $2.15-$2.25 range.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.