Earnings Per Share (EPS) of $0.60 exceeded the estimated $0.569, showcasing AT&T’s ability to surpass earnings expectations.
Revenue of $30.21 billion fell short of the estimated $30.45 billion, indicating challenges in meeting revenue forecasts.
The addition of 403,000 net monthly bill-paying wireless phone subscribers highlights the success of AT&T’s premium unlimited plans.
AT&T (NYSE:T) is a major player in the U.S. telecommunications industry, competing with giants like Verizon and T-Mobile. The company offers a range of services, including wireless, broadband, and entertainment. On October 23, 2024, AT&T reported its third-quarter earnings, revealing an earnings per share (EPS) of $0.60, which exceeded the estimated $0.569.
Despite surpassing EPS expectations, AT&T’s revenue of $30.21 billion fell short of the estimated $30.45 billion. This revenue figure also represents a slight decline from the $30.35 billion reported in the same quarter last year. The company has only exceeded consensus revenue estimates once in the past four quarters, highlighting a challenge in meeting revenue expectations.
AT&T’s earnings surprise of 1.69% in the third quarter contrasts with the previous quarter’s negative surprise of 1.72%. Over the last four quarters, AT&T has exceeded consensus EPS estimates twice, demonstrating some consistency in outperforming earnings expectations. However, the EPS of $0.60 is a decrease from the $0.64 reported in the same quarter last year.
The company has seen success in its wireless segment, adding 403,000 net monthly bill-paying wireless phone subscribers, surpassing the Visible Alpha forecast of 393,430. This growth is attributed to the popularity of its premium unlimited plans, which offer enhanced benefits. This positive performance has contributed to a 3.1% rise in AT&T’s share price during premarket trading.
AT&T’s financial metrics provide insight into its market valuation and financial health. With a price-to-earnings (P/E) ratio of approximately 12.44 and a price-to-sales ratio of about 1.29, the market’s valuation of its earnings and sales is evident. The company’s debt-to-equity ratio of approximately 1.24 indicates a significant reliance on debt financing, while a current ratio of around 0.58 suggests potential liquidity challenges.
