AT&T Beat Expectations - Stock up 7%

TL;DR

ATT reported growth in revenue and earnings but faced concerns over their debt and lower free cash flow.

Transcript

a T and T they just reported now they showed some growth but you got to remember that their growth came when it comes to taking out when they spun off their their um video division so the revenue looks like it's gone lower from same quarter to same quarter but it took off the video division so taking out the video division numbers last year they ha... Read More

Key Insights

• 🛀 ATT's earnings report showed growth, with revenue and earnings per share surpassing expectations.
• ✋ Despite the positive financial results, concerns were raised about their high debt levels and lower free cash flow.
• 🏣 The company performed well in their mobile and fiber divisions, exceeding estimates for post-paid wireless and fiber subscriptions.
• 💦 ATT's stock price has experienced volatility over the years, with a significant drop and slow recovery.
• ✋ The Enterprise Value of ATT indicates a high debt burden compared to other companies in the industry.
• 🤨 Declining revenue and earnings estimates raise questions about the company's long-term growth potential.
• 🥶 ATT's attractive dividend yield may be at risk if debt concerns persist and impact their ability to generate sufficient free cash flow.

Questions & Answers

Q: What were ATT's key financial results in their recent earnings report?

ATT reported a jump in revenue and earnings per share, beating estimates with a 3-4% increase in revenue excluding their video division.

Q: What concerns were raised regarding ATT's financials?

Concerns were raised over the company's debt levels and lower free cash flow, which may impact their ability to pay dividends and manage their debt.

Q: How did ATT perform in their mobile and fiber divisions?

ATT exceeded estimates in their mobile division with 708,000 post-paid wireless subscriptions and in their fiber division with 338,000 subscriptions.

Q: How does ATT's debt level compare to other companies in the industry?

ATT's debt level is high, with a long-term debt of $242 billion. This is a concern as higher debt levels can lead to complications when refinancing or managing debt obligations.

Summary & Key Takeaways

• ATT's revenue and earnings per share exceeded expectations, with a 3-4% increase in revenue excluding their video division.

• However, concerns arose over their debt levels and lower free cash flow, which could impact their ability to pay dividends and manage their debt.

• The company showed strong growth in their mobile and fiber divisions, surpassing estimates for post-paid wireless and fiber subscriptions.