AT&T (NYSE:T) Exceeds Earnings Expectations in Q1 Despite Revenue Dip

Scarlett MLast Updated: April 25, 2024

In its first-quarter report, Q1 AT&T surpassed analyst earnings forecasts, though revenue fell slightly below expectations. The stock saw a 1.5% increase in premarket trading following the announcement.

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Q1

For fiscal Q1 2024, AT&T posted earnings per share (EPS) of $0.55, surpassing the consensus estimate of $0.53. However, the company’s revenue for the quarter totaled $30 billion, slightly under the consensus projection of $30.53 billion.

AT&T highlighted a $225 million increase in total service revenues, offset by a $336 million decrease in equipment revenues. Notably, mobility service revenues grew by 3.3%, and broadband revenues surged by 7.7%, primarily fueled by the expansion of fiber services.

The company reported adjusted EBITDA of $11 billion for the quarter, marking a 3.8% year-over-year increase and surpassing analysts’ expectations of $10.89 billion.

AT&T clarified that the reported adjusted EPS included an approximate $0.11 impact from various factors, including higher depreciation, non-cash pension and post-retirement costs, lower capitalized interest, and reduced equity income from DIRECTV.

Reiterating its guidance for the full fiscal 2024, AT&T expects adjusted EPS in the range of $2.15 to $2.25.

“Our results this quarter reflect continued strong growth in our Mobility and Consumer Wireline connectivity businesses, which represent about 80% of our total revenues,” remarked John Stankey, CEO of AT&T. “Customers are choosing AT&T and staying with us. We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in Mobility and Consumer Wireline.”