AT&T Stock Jumps 9 Percent After Besting Earnings Predictions

‘We remain confident in our ability to achieve, or surpass, all our financial commitments for the year, while still investing to bring our customers the industry’s best services,’ AT&T CEO John Stankey.

AT&T CEO John Stankey

AT&T stock is climbing over 9 percent on Thursday following a successful third quarter, which saw the telecommunications star add a significant amount of new subscribers and exceed profit expectations.

The telecom giant’s stock is trading at $16.94 per share as of early Thursday afternoon, up from $15.54 per share on Wednesday.

AT&T’s stock price was sitting at $14.63 per share last week, marking the lowest price per share of AT&T stock in more than a decade.

“We’re investing at record levels to enhance our 5G and fiber connectivity and to deliver the best experience available in the market,” said AT&T CEO John Stankey during the company’s third quarter earnings report Thursday morning. “Our results show our strategy is resonating with customers as we continue to see robust levels of postpaid phone net adds and approach 1 million AT&T Fiber net adds for the year.”

[Related: AT&T Mulling Multibillion-Dollar Joint Venture For Fiber Network Growth]

AT&T Earning Results

AT&T bested both earnings and sales metrics for its third quarter 2022, while also raising its profit forecast.

The company posted adjusted earnings of $0.68 cents for the quarter, up 3 percent year over year, exceeding Wall Street’s predictions of $0.61 cents.

The company generated $30 billion in total sales, representing a decline of 4.1 percent year over year, which reflects the impact of its DirectTV and WarnerMedia separation in July 2021, AT&T said.

However, the $30 billion topped analysts’ revenue expectations of $29.8 billion.

The Dallas, Texas-based company said it is confident in its ability to deliver $14 billion in free cash flow in 2022.

AT&T CEO said his company’s “disciplined go-to-market” approach is driving healthy subscriber growth with high-quality customers.

“As a result, we now expect to achieve wireless service revenue growth in the upper end of the 4.5 percent to 5 percent range,” said Stankey. “We remain confident in our ability to achieve, or surpass, all our financial commitments for the year, while still investing to bring our customers the industry’s best services.”

AT&T Stock Rises Thanks To New Wireless Subscribers

AT&T added 964,000 postpaid total wireless subscribers during the quarter.

The company also added 338,000 subscribers to its Fiber business, which marked the second-best quarter ever, according to AT&T, and eleventh straight quarter with more than 200,000 new subscribers.

AT&T wireless service revenues were up 5.6 percent to $15.3 billion, which AT&T says is the best growth in more than a decade.

The company’s third quarter financial earnings results come just one day after news that AT&T is in early talks with Morgan Stanley to set up a joint venture with an infrastructure provider that would invest billions into grow the carrier’s fiber network.

The venture is expected to be valued at upwards of $15 billion.