In terms of guidance the company updated its expectations to put EPS in the range of $2.68 to $2.74 and free cash flow in the $15 billion range or better. There is a consensus estimate of $2.61 in EPS for the 2015 full year.
Operating income totaled $5.9 billion in the third quarter compared to $5.6 billion last year; and operating income margin was 15.2%, down from 17.0%.
The company listed a few operational highlights as:
- 26,000 domestic DIRECTV net adds.
- 192,000 IP broadband net adds.
- 2.5 million AT&T Mobility domestic wireless net adds with gains in every customer category.
- 755,000 branded net adds, including solid phone net adds.
- 289,000 postpaid and 466,000 prepaid net adds, which was best prepaid net add quarter in nearly 8 years.
- Record 1.6 million connected device net adds including 1 million connected cars.
Randall Stephenson, chairman and CEO of AT&T, commented on earnings:
We now have integrated solutions that are unlike any competitor in the market. With our national wireless and video capabilities, as well as our extensive broadband network, we now have assets that make us a unique competitor and the first scaled, fully-integrated U.S. service provider.
He added:
We turned in outstanding financial results in the quarter. Our early integration efforts with DIRECTV are going very well and we’ve just begun to scratch the surface on the video, wireless and broadband cross-selling opportunities.
Free cash flow totaled $5.5 billion for the quarter and $12.8 billion year to date. The free cash flow dividend payout ratio was 57% year to date, improved from 67% in the second quarter.
Shares of AT&T closed Thursday up 1.1% at $33.96, with a consensus analyst price target of $37.04 and a 52-week trading range of $30.97 to $36.45. Following the release of the earnings report, shares traded up 2% at $34.65 in the after-hours trading session.
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