AT&T outperforms Q3 estimates, raises full-year forecast

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In terms of subscribers, AT&T gained an impressive 468,000 postpaid phone subscribers in Q3, marking an increase from Q2’s 326,000. The company managed to maintain a steady postpaid churn rate at 0.95%.

One of the key drivers behind AT&T’s strong performance is its booming fiber business. The firm added 296,000 net subscribers to its fiber segment, which helped to raise the fiber revenue by 27% to $1.6 billion. This growth was further supported by an 8.9% increase in consumer fiber average revenue per user.

The company’s customer base also saw expansion following the launch of the Internet Air fixed wireless service.

Following these robust Q3 results, AT&T revised its full-year free-cash-flow forecast upwards from $16 billion to approximately $16.5 billion. As part of its financial strategy, the company is implementing a cost-cutting plan aimed at saving at least $2 billion over the next three years.

AT&T continues to attract investors with a dividend yield of about 7.2% and a price-to-free-cash-flow ratio of about 6.6, based on InvestingPro metrics. The company is currently $2.4 billion ahead of last year’s free cash flow.

InvestingPro Tips suggest that AT&T’s valuation implies a strong free cash flow yield, and that the company has maintained dividend payments for 40 consecutive years. These factors make it a prominent player in the Diversified Telecommunication Services industry.

While some analysts suggest there are 10 stocks that could potentially outperform AT&T, the company’s strong Q3 performance and raised full-year forecast indicate a promising outlook. For more in-depth analysis and tips, consider checking out InvestingPro’s services here. They provide additional tips and real-time metrics to help you make informed investment decisions.

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