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AT&T posts Q2 EPS growth and lifts shareholder returns amid convergence
AT&T added 432,000 postpaid phone subscribers and 646,000 internet subscribers in Q2, while management reaffirmed full-year EPS guidance of $2.25 to $2.35.
AT&T reported Q2 earnings after a three-day stretch of results across major US telecoms, and MarketBeat Ratings says the sector is looking healthier as carriers move away from growth funded by promotions and subsidization. All three companies in the group grew EPS year over year in Q2 and increased buybacks and dividends, a sign management believes shares are undervalued.
In the reactions to those results, AT&T shares jumped more than 3% following its July 22 earnings release, helped by what the outlet describes as rapid growth and low churn tied to its services convergence push. MarketBeat Ratings notes that AT&T delivered a clear EPS beat alongside a slight revenue miss, with subscriber and retention metrics driving the response.
AT&T added 432,000 postpaid phone subscribers and 646,000 internet subscribers in Q2, including more than 147,000 new accounts rather than just extra lines. Home internet revenue grew 27% year over year, and management expects fiber internet to reach more than 40 million households by year end.
The outlet also highlights retention and cross-sell indicators, including postpaid wireless churn falling to 0.86% year over year, below 1% of customers canceling each month. It says 42% of home internet customers subscribe to AT&T wireless, and management reaffirmed full-year EPS guidance of $2.25 to $2.35 and free cash flow guidance of $18 billion, while committing to $45 billion in shareholder return.