AT&T Inc. ($T) Earnings (Q3 FY22)

 AT&T Inc. ($T) Earnings and Opinion:


AT&T is a company in the Communication Services sector and operates in the Telecom Services industry. The company provides telecommunications, media, and technology services worldwide. AT&T was incorporated in 1983 and is currently headquartered in Dallas, Texas. The company made its debut on the stock market in 1983.

AT&T Financial Results: 

  • Revenue of $30.04B beating expectations of $29.84B
  • Adj EBITDA of $10.71B beating expectations of $10.39B
  • Free Cash Flow of $3.84B missing expectations of $4.28B
  • Adj Diluted EPS of $0.68 beating expectations of $0.60
Opinion:
AT&T is currently moving higher in todays session. The company reported earnings before the market opened this morning. AT&T had a pretty solid earnings report, with consumer demand and expected profits increasing. The company is doing a wonderful job on expanding its wireless growth. They are starting to get ahead of peers, and the big question is if competitors will even catch them. AT&T was able to add 338,000 new fiber customers during the quarter, but they failed to gain on nonfiber customers, showing a loss of 29,000 in that category. The CEO said that the company is ahead on the wireless upgrades, this is causing the spending metrics to rise. However, they are looking to shape that down by about $2B next quarter. The financials were really strong though. The revenue came in above the expectations, along with most everything else. The Free Cash Flow missed on expectations, but that's because of the expenditures rising. They will look to cut those expenditures, which we all hope will bring up that Free Cash Flow in the future. Profitability looks like it is strengthening, as the company is looking to rebound from all the debt. In terms of valuation, EV/EBITDA is at 5.98, which is lower than peers. The P/E ratio is at 5.61, which is also lower than the median. The company looks to be a little undervalue at this point. In my opinion, AT&T is a company that has struggled over the past couple of years. I am a current investor and it has been a train ride down with the stock price. They company looks to be turning the tide a little bit, and this earnings report sure is optimistic. I think the future looks good for them, and hopefully they can ride this growth and get the company back into the position it needs to be in. I am long AT&T $T.


*Information from Bloomberg and Yahoo Finance

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