Telecom & Wireless
AT&T Wins Big in Q4 With Earnings and Tax Reform
Published:
Last Updated:
AT&T Inc. (NYSE: T) released its fourth quarter earnings report after markets closed Wednesday. The company posted $0.78 in earnings per share (EPS) on $41.68 billion in revenue versus consensus estimates from Thomson Reuters that called for $0.65 in EPS and $41.19 billion in revenue. The same period from last year had $0.66 in EPS and $41.84 billion in revenue.
Fourth-quarter net income attributable to AT&T was $19.0 billion, or $3.08 per diluted share, and reflects the impact of the Tax Cuts and Jobs Act, compared to $2.4 billion, or $0.39 per diluted share, in the year-ago quarter.
During this quarter, cash from operating activities was $9.9 billion and capital expenditures were $5.1 billion. Free cash flow totaled $4.8 billion for the quarter.
The telecom giant reported its segments as:
- Business Solutions Segment had total operating revenues of $18.39 billion.
- Entertainment Group Segment had total operating revenues of $12.75 billion.
- Consumer Mobility Segment had total operating revenues of $8.27 billion.
- International Segment had total operating revenues of $2.22 billion.
In terms of the outlook for 2018, AT&T expects to see EPS of $3.50, with free cash flow of about $21 billion, and capital expenditures approaching $25 billion. There are consensus estimates calling for $0.78 in EPS and $39.69 billion in revenue.
Randall Stephenson, AT&T Chairman and CEO, commented:
The impact of tax reform and regulatory rationalization will be substantial and positive for the U.S. economy and AT&T. Our FirstNet win and the opt-in by 100 percent of all states and territories will enable us to put the industry’s most robust spectrum assets to work in building a best-in-class nationwide network for public safety and first responders. On the Time Warner front, we look forward to presenting our case in court and closing the deal.
Shares of AT&T closed Wednesday at $37.45, with a consensus analyst price target of $39.81 and a 52-week range of $32.55 to $42.70. Following the announcement, the stock was up about 3% at $38.60 in the after-hours trading session.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
