T Stock: AT&T Earnings Fall But Top Views As Wireless Growth Slows

AT&T (T) early Thursday reported first-quarter earnings that topped estimates while revenue slightly missed Wall Street targets. T stock fell as wireless subscriber growth slowed down as expected.

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Reported before the market open, AT&T earnings excluded WarnerMedia, spun off in early April 2022. The telecom giant said March quarter adjusted earnings from continuing operations were 60 cents, down nearly 5% from a year earlier. Revenue from continuing operations rose 1.4% to $30.1 billion.

Analysts had projected AT&T earnings of 58 cents a share on revenue of $30.2 billion, according to FactSet. A year earlier, AT&T earned 63 cents a share on revenue of $29.7 billion from continuing operations.

AT&T said Q1 free cash flow came in at $1 billion, missing estimates of $3.2 billion. Free cash flow growth supports AT&T’s dividend.

T Stock: Wireless Subscriber Growth Slows

On the stock market today, T stock fell 4.1% to below 19. Shares hold an entry point of 21.63. Heading into the AT&T earnings report, shares were up nearly 7% in 2023.

In Q1, wireless revenue rose 2.5% to $20.6 billion. Also, the company said it added 424,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 396,000 gain.

AT&T added 691,000 postpaid phone subscribers in the year-earlier period. Subscriber growth is expected to slow for T-Mobile US (TMUS) and Verizon Communications (VZ) as well.

Verizon reports on April 25. T-Mobile follows on April 27.

Heading into the AT&T earnings report, shares owned a Relative Strength Rating of 78 out of a best-possible 99, according to IBD Stock Checkup.

WarnerMedia merged with Discovery to form Warner Bros. Discovery (WBD).

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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