Zinger Key Points
- AT&T Q4 revenue rose 0.9% Y/Y to $32.3B, beating estimates; adjusted EPS of $0.54 surpassed $0.50 expectations.
- Added 482K postpaid phone net adds and 307K fiber net adds; FY25 outlook includes mid-teens broadband revenue growth.
On Monday, AT&T Inc T reported fourth-quarter 2024 operating revenues of $32.30 billion, up by 0.9% year over year. It beat the analyst consensus estimate of $32.04 billion. Adjusted EPS of $0.54 beat the estimate of $0.50.
The stock gained after the print. The performance reflected momentum in gaining and retaining profitable 5G and fiber subscribers.
AT&T's 482 thousand postpaid phone net adds (versus 526 thousand a year ago) with postpaid phone churn of 0.85% (versus 0.84% a year ago).
The Consumer Wireline segment had 307 thousand AT&T Fiber net adds.
The company reported 158 thousand AT&T Internet Air net adds.
AT&T's adjusted EBITDA of $10.8 billion was up from $10.6 billion a year ago. It spent $6.8 billion on Capex.
Net income was $4.4 billion versus $2.6 billion in the year-ago quarter.
The company generated $11.9 billion in operating cash flow (up from $11.4 billion in the year-ago quarter) and $4.8 billion in free cash flow (down from 6.4 billion last year).
Prepaid churn was 2.73% compared to 2.97% in the year-ago quarter. Postpaid phone-only ARPU was $56.72, up 0.9% compared to the year-ago quarter.
Operating Income: Operating income was $5.13 billion, consistent with the year-ago quarter.
The mobility segment's operating income declined 1.4% year over year to $6.1 billion, with a margin of 26.5% compared to 27.7% in the year-ago quarter.
The Business Wireline segment operating margin was (4.6)% compared to 3.3% in the year-ago quarter. The Consumer Wireline segment operating margin was 8.0% compared to 6.8% in the year-ago quarter.
FY25 Outlook: AT&T projected consolidated service revenue growth in the low-single-digit range, Mobility service revenue growth in the higher end of 2%-3%, Consumer fiber broadband revenue growth in the mid-teens, and adjusted EPS of $1.97 – $2.07 versus the $2.18 consensus.
It maintained full-year adjusted EBITDA growth of 3% or better and full-year free cash flow, excluding DIRECTV, of $16 billion+.
AT&T stock surged 32% in the last 12 months.
Price Action: T stock is up 2.38% at $23.26 in the premarket at the last check on Monday.
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