AT&T Remains Relatively Flat After Meeting Earnings

AT&T Inc. (NYSE: T) reported fourth quarter financial results after markets closed on Wednesday. The telecom giant posted $0.66 in earnings per share (EPS) and $41.8 billion in revenue, versus consensus estimates from Thomson Reuters that called for $0.66 in EPS and $42.04 billion in revenue. The same period from last year had $0.63 in EPS and $42.12 billion in revenue.

In terms of guidance for 2017, the company expects to see EPS growth in the mid-single digit range and consolidated revenue growth in the low-single digits. There are consensus estimates calling for $2.96 in EPS and $166.57 billion in revenue for the full year.

During the fourth quarter, AT&T had 2.8 million wireless net adds, with 1.5 million from the U.S. and 1.3 million from Mexico. Also 1.1 million branded smartphones were added to the subscriber base.

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The company had a strong DIRECTV NOW launch with over 200,000 paid net adds. At the same time AT&T had 235,000 U.S. DIRECTV satellite net adds.

Cash from operations during the quarter totaled $10.1 billion and free cash flow was up 19.2% to $3.7 billion.

Randall Stephenson, AT&T Chairman and CEO, commented:

2016 was a transformational year for AT&T, one in which we made tremendous progress toward our goal of becoming the global leader in telecom, media and technology. We launched DIRECTV NOW, our innovative over-the-top streaming service. Our 5G evolution plans and improved spectrum position are paving the way for the next-generation of super-fast mobile and fixed networks. And we shook-up the industry with our landscape-changing deal to acquire Time Warner, the logical next step in our strategy to bring together world-class content with best-in-class distribution which will drive innovation and more choice for consumers.

Shares of AT&T closed Wednesday at $41.40, with a consensus analyst price target of $41.55 and a 52-week trading range of $34.90 to $43.89. Initially following the release of the earnings report, the stock was relatively flat in the after-hours trading session.

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