No recommendation
No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.
(Sharecast News) - American telecoms and cable TV giant AT&T beat forecasts with its second-quarter results on Wednesday and raised its revenue growth assumptions, as wireless and internet subscribers grew strongly.
Revenues in the second quarter rose 3.4% year-on-year to $30.8bn, beating the $30.5bn consensus estimate.
Net income jumped by $1bn over last year to $4.9bn, while adjusted EBITDA rose to $11.7bn from $11.3bn and adjusted EPS improved to $0.54 from $0.51 - also ahead of forecasts.
The company reported 401,000 postpaid phone net adds, ahead of the 302,600 expected by the market, while net broadband adds totalled 150,000, nearly three times the amount of last year.
"We are winning in a highly competitive marketplace, with the nation's largest wireless and fibre networks," said chair and chief executive John Stankey.
"The milestones achieved this quarter - from passing more than 30 million customer locations with fiber and eclipsing 1 million total AT&T Internet Air customers, to our agreement to acquire substantially all of Lumen's Mass Markets fiber business - strengthen the industry's best and leading connectivity portfolio."
Looking ahead, AT&T pointed to consolidated service revenue growth in the low-single-digit percentage range, forecasting mobile service revenue growth of "3% or better" and consumer fibre broadband revenue growth in the "mid-to-high teens".
This is ahead of earlier guidance for 2-3% growth in mobility service revenues and broadband revenue growth in the mid-teens.
AT&T's share price was up 0.4% at $27.52 by 1143 in New York.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.