AT&T Q1 Earnings Surge on 5G, Fiber Expansion

AT&T's Q1 2024 results showcase strong performance driven by 5G and fiber growth initiatives. The company reported revenues of $30.0 billion and adjusted EPS of $0.55, surpassing expectations. Operating income reached $5.8 billion, and net income was $3.8 billion. Cash from operating activities increased by $0.9 billion to $7.5 billion, while capital expenditures were $3.8 billion, resulting in a free cash flow of $3.1 billion. AT&T's solid financial health positions it for continued growth in its core business areas and strategic investments in 5G and fiber broadband services.

AT&T Q1 2024 Financial Results: Robust Growth Fueled by 5G, Fiber Expansion

April XX, 2024

New York, NY - AT&T Inc. (NYSE: T), the multinational telecommunications conglomerate, reported strong financial results for the first quarter of 2024, reflecting the company's strategic investments in 5G and fiber broadband services.

Financial Highlights

• Revenue: $30.0 billion, slightly below analysts' expectations of $30.53 billion
• Adjusted Earnings Per Share (EPS): $0.55, exceeding consensus estimates of $0.5323
• Operating Income: $5.8 billion
• Net Income: $3.8 billion
• Cash from Operating Activities: $7.5 billion, a year-over-year increase of $0.9 billion
• Capital Expenditures: $3.8 billion
• Free Cash Flow: $3.1 billion, a notable $2.1 billion increase from Q1 2023

Operational Performance

AT&T's operational performance in Q1 2024 demonstrated solid growth in its core business lines:

• Postpaid Phone Net Additions: 349,000, indicating strong customer acquisition and retention
• Postpaid Phone Churn: A record-low 0.72%, further reflecting the company's successful customer retention strategies
• Mobility Service Revenues: $16.0 billion, a 3.3% increase year-over-year
• Consumer Broadband Revenues: $2.7 billion, a 7.7% growth
• 5G and Fiber Network Expansion: AT&T expanded its 5G and fiber coverage to over 27.1 million consumer and business locations

Analyst Sentiment

Analysts generally view AT&T's Q1 2024 results positively, highlighting the company's strong performance in key areas:

• EPS Beat: AT&T exceeded EPS expectations, demonstrating its ability to generate solid profitability
• Robust Cash Flow: The company's significant improvement in cash flow generation underscores its financial strength
• Continued Investment in 5G and Fiber: AT&T's ongoing investments in these technologies are expected to drive future growth

Full-Year Guidance

AT&T reiterated its full-year guidance for 2024, expressing confidence in its growth trajectory:

• Wireless Service Revenue Growth: Expected to be in the 3% range
• Broadband Revenue Growth: Projected to be 7%+
• Adjusted EBITDA Growth: Anticipated to be in the 3% range
• Capital Expenditures: $21-$22 billion planned for further network expansion and enhancement
• Free Cash Flow: Projected range of $17-$18 billion
• Adjusted EPS: Estimated to be in the $2.15-$2.25 range

Conclusion

AT&T's Q1 2024 financial results showcase the company's continued focus on delivering strong operational performance and financial discipline. The company's strategic investments in 5G and fiber technologies are driving customer growth and retention, while also improving profitability and cash flow generation. As AT&T executes its full-year guidance, the company is well-positioned to maintain its leadership position in the telecommunications industry.