AT&T Offers $5 Credit for Nationwide Outage, Commits to 2024 Objectives Amid FCC Investigation
Portfolio Pulse from Anusuya Lahiri
AT&T Inc (NYSE:T) announced a $5 credit for customers affected by a nationwide network outage last week, excluding business accounts and prepaid services like Cricket Wireless. CEO John Stankey stated the cost is manageable and won't affect 2024 goals or financial guidance. The outage, caused by an incorrect process during network expansion, prompted an FCC investigation. Despite the disruption, AT&T's Q4 2023 revenues were up 2.2% YOY, and shares rose 0.12% in premarket trading.
February 26, 2024 | 1:12 pm
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NEUTRAL IMPACT
AT&T offers a $5 credit for customers affected by a nationwide outage, excluding certain accounts. The company assures financial goals for 2024 remain unaffected, with Q4 2023 revenues up 2.2% YOY.
The $5 credit offer by AT&T to affected customers is a gesture of goodwill that might mitigate some customer dissatisfaction but is unlikely to have a significant financial impact on the company. The assurance from CEO John Stankey that the outage costs are manageable and will not affect the company's 2024 goals or financial guidance, combined with the reported increase in Q4 2023 revenues, suggests a neutral to slightly positive short-term impact on AT&T's stock. The ongoing FCC investigation could introduce uncertainty, but the company's proactive measures and financial performance indicators provide some counterbalance.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100