AT&T Inc (T) reported its second-quarter results for 2024 today, showcasing strong performance in its 5G and fiber customer growth. This quarterly release highlights the company’s consistent financial health, underpinned by increasing revenues in mobility services and broadband, alongside robust customer additions in both segments.
Key Insights from AT&T’s Q2 Reports:
AT&T’s second-quarter consolidated results revealed several critical metrics that underscore its stable performance. The company reported revenues of $29.8 billion, a slight decrease of 0.4% from the previous year. However, the diluted EPS stood at $0.49, with an adjusted EPS of $0.57.
- 419,000 postpaid phone net additions with a postpaid phone churn rate of 0.70%.
- Mobility service revenues increased by 3.4% year-over-year to $16.3 billion.
- 239,000 AT&T Fiber net additions, marking the 18th consecutive quarter with over 200,000 net adds.
- Consumer broadband revenues grew by 7.0% year-over-year to $2.7 billion.
Management Discussion and Analysis:
John Stankey, AT&T’s CEO, emphasized the company’s strategic focus on converged connectivity, which is proving beneficial as customers increasingly seek unified services from a single provider. The integration of wireless and fiber services has been a key driver of customer retention and acquisition, positioning AT&T as a leader in both segments.
The company’s financial performance is also supported by substantial investments in network infrastructure. AT&T’s capital expenditures for the quarter were $4.4 billion, with total capital investment reaching $4.9 billion. Despite a slight year-over-year decline in cash from operating activities to $9.1 billion, the free cash flow increased to $4.6 billion.
Stock Target Advisor’s Analysis on AT&T:
Stock Target Advisor’s analysis offers a nuanced perspective on AT&T’s stock. While the overall analyst rating is a Strong Buy with an average target price of $21.75 over the next 12 months, Stock Target Advisor’s own rating is Slightly Bearish. This is based on five positive signals and seven negative signals.
At the last closing, AT&T’s stock price was $18.21, with a one-year change of +21.81%. Despite the mixed signals, the stock has shown resilience and growth potential, particularly in its dividend returns and total annual returns.
Conclusion:
AT&T’s second-quarter results for 2024 reflect a robust operational and financial performance, driven by strategic investments in 5G and fiber networks. The company’s focus on converged connectivity has resulted in significant customer growth and retention, underpinning its strong revenue performance.
