Telecom Stocks Surge as AT&T and Verizon Report Strong Earnings
The telecom industry is off to a strong start in 2025, with AT&T and Verizon reporting impressive fourth-quarter earnings that exceeded Wall Street estimates. This news sent their stocks soaring, with AT&T rising 2% to above $23 in early trading, and Verizon increasing 1.5% in premarket trade.
AT&T’s Impressive Q4 Performance
AT&T reported adjusted earnings of 54 cents per share, matching its performance from the same period last year. Revenue from continuing operations rose 0.9% to $32.3 billion, beating analysts’ projections of $30 billion. The company’s strong performance was driven by the addition of 482,000 postpaid wireless phone customers, exceeding estimates of 443,000. AT&T also added 307,000 landline fiber-optic broadband customers, a significant boost to its subscriber base.
Free Cash Flow Supports Dividend Growth
AT&T reported free cash flow of $4.8 billion, down from $6.4 billion a year earlier, but in line with estimates. This growth in free cash flow supports the company’s dividend, providing a positive outlook for investors.
Verizon’s Strong Earnings Report
Verizon Communications also reported strong earnings, topping estimates and sending its stock up 0.9% on Friday. The company’s wireless service revenue outlook for 2025 met views, providing a positive outlook for the industry.
Investor Sentiment Boosted
The strong earnings reports from AT&T and Verizon have boosted investor sentiment, with AT&T stock rising above its 50-day line and Verizon shares edging up 0.9%. This positive momentum is expected to continue, with AT&T expecting to generate over $50 billion in free cash flow over the next three years, with $20 billion allocated to stock buybacks.
Stay Ahead of the Curve
Stay up-to-date with the latest news and trends in the telecom industry, including AT&T, Verizon, and T-Mobile. Get instant access to exclusive stock lists, expert market analysis, and powerful tools with a subscription to IBD Digital.
Leave a Reply