AT&T’s Q4 Earnings: A Strong Finish to 2024
Revenue and Earnings Exceed Expectations
AT&T Inc (NYSE:T) wrapped up 2024 on a high note, reporting fourth-quarter operating revenues of $32.30 billion, a 0.9% year-over-year increase. This beat the analyst consensus estimate of $32.04 billion. Moreover, the company’s adjusted EPS of $0.54 surpassed the expected $0.50, sending its stock soaring.
Gaining Momentum in 5G and Fiber Subscribers
The telecom giant’s strong performance can be attributed to its success in gaining and retaining profitable 5G and fiber subscribers. This is evident in its Consumer Wireline segment, which saw 307 thousand AT&T Fiber net adds and 158 thousand AT&T Internet Air net adds.
Key Metrics and Financials
AT&T’s adjusted EBITDA reached $10.8 billion, up from $10.6 billion in the same quarter last year. The company invested $6.8 billion in capital expenditures. Net income rose to $4.4 billion, compared to $2.6 billion in the year-ago quarter. Operating cash flow increased to $11.9 billion, while free cash flow stood at $4.8 billion.
Segment Performance
The mobility segment’s operating income declined 1.4% year over year to $6.1 billion, with a margin of 26.5%. In contrast, the Consumer Wireline segment operating margin expanded to 8.0%, up from 6.8% in the same quarter last year. The Business Wireline segment operating margin contracted to (4.6)%, down from 3.3% in the year-ago quarter.
FY25 Outlook: Consolidated Service Revenue Growth Expected
Looking ahead to 2025, AT&T projects consolidated service revenue growth in the low-single-digit range. The company anticipates Mobility service revenue growth in the higher end of 2%-3%, while Consumer fiber broadband revenue is expected to grow in the mid-teens. Adjusted EPS is projected to be between $1.97 and $2.07, slightly below the consensus estimate of $2.18.
Stock Performance
AT&T’s stock has surged 32% over the last 12 months, with shares currently trading at $23.26 in the premarket.
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