Why Is Telecom Giant AT&T Stock Down Today?
Portfolio Pulse from Anusuya Lahiri
AT&T Inc (NYSE:T) reported Q4 2023 operating revenues of $32.02 billion, surpassing consensus estimates but with an adjusted EPS of $0.54, missing the expected $0.56. The company saw growth in Mobility, Mexico, and Consumer Wireline revenues, but a decline in Business Wireline revenues. AT&T's adjusted EBITDA increased, and it generated $6.4 billion in free cash flow. The company provided FY24 outlook with lower than consensus adjusted EPS expectations, projecting growth in wireless service and broadband revenues. AT&T shares dropped 2.73% in premarket trading.
January 24, 2024 | 2:18 pm
News sentiment analysis
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NEGATIVE IMPACT
AT&T reported higher Q4 revenues but missed EPS estimates and provided a FY24 outlook with lower adjusted EPS than expected, leading to a premarket stock price decline.
The stock price decline in premarket trading is likely due to the missed EPS and the cautious FY24 EPS outlook, which may concern investors about future profitability.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Verizon, mentioned for comparison in postpaid phone net adds, may see indirect impact from AT&T's earnings report but is not the focus of the news.
Verizon is mentioned for comparative purposes in the context of postpaid phone net adds. The news is primarily about AT&T, so the impact on Verizon is likely to be minimal and indirect.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20