AT&T Inc. (T) shares are trading lower in pre-market trading on Wednesday. This comes after CEO John Stankey provided a positive update on the company’s performance during a recent investor call. Stankey highlighted that the wireless industry is seeing stable trends, although they are normalizing. He expressed satisfaction with the performance of AT&T’s Mobility business in the third quarter.
Stankey also noted that the company is exceeding its initial projections for fiber penetration rates. While a work stoppage is currently impacting some fiber installations, AT&T does not anticipate this to significantly affect financial results in the third quarter.
Looking ahead, AT&T remains committed to its long-term growth strategy. The company expects to invest between $21 billion and $22 billion in 2024 to support its 5G and fiber initiatives. AT&T also aims to achieve over $2 billion in run-rate cost savings by mid-2026. Additionally, the company is on track to reach a net-debt-to-adjusted EBITDA ratio of around 2.5x in the first half of 2025. AT&T plans to address short-term financing obligations while working towards a more sustainable and consistent free cash flow.
In terms of financial guidance, AT&T reiterated the annual guidance it provided in July. This includes a projected FY24 Wireless service revenue growth in the 3% range, Broadband revenue growth of 7%+, and adjusted EPS of $2.15 – $2.25. The company also expects full-year adjusted EBITDA growth in the 3% range and a full-year free cash flow of $17 billion-$18 billion.
For investors interested in gaining exposure to AT&T, two ETFs that hold the stock are iShares MSCI USA Value Factor ETF (VLUE) and ETC 6 Meridian Mega Cap Equity ETF (SIXA).
As of the last check on Wednesday, T shares are down 0.28% at $21.65 in pre-market trading.
