AT&T (NYSE:T) shares gained more than 3% intra-day today after the company reported better-than-expected third-quarter adjusted profits, bolstered by robust wireless subscriber growth, while reiterating its full-year forecast. The telecommunications giant added 403,000 postpaid wireless phone subscribers during the quarter, exceeding the Street estimate of 394,645, as its competitively priced unlimited plans continued to attract cost-conscious consumers. Postpaid phone churn improved slightly, falling to 0.78% compared to 0.79% in the same period last year.
The company’s fiber business also grew, adding 226,000 net subscribers, marking the 19th consecutive quarter of over 200,000 net additions. However, this figure fell short of projections, partly due to the impact of Hurricane Helene and a work stoppage in the Southeast.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $11.6 billion, up from $11.2 billion in the previous year, surpassing analyst expectations of $11.38 billion. However, total revenue dipped by 0.7% to $30.2 billion, missing forecasts. The decline was attributed to weaker demand for the company’s business wireline voice and data services, as well as the absence of approximately $100 million in intellectual property sales recorded in the prior year.
Despite these challenges, AT&T maintained its full-year guidance for adjusted core earnings and wireless service revenue growth but revised its expectations for the business wireline division, now predicting a decline in income in the “high-teens” range, compared to the previously forecasted “mid-teens” drop.