AT&T Stock ( NYSE:T )
With its most recent quarterly report, AT&T ( NYSE:T ) seems to have put a “tiger in the tank.” That should mean that shareholders will have a much better time in the future than they did in the past. So, forget about the past ten years and prepare for something different. AT&T stock will probably go up because of that.
Cash Flow
By far, the biggest surprise was the rise in free cash flow.
There were many worries about whether the dividend could be paid out of the cash flow. So far, the pattern is that cash flow is “end loaded,” with a lot of cash coming in during the fourth quarter in both years (as shown above). So, if “concerns” about the dividend come up early in the fiscal year, all you or any other investor need to do is point out that the fourth quarter seems to have an unusually high level of free cash flow. So, unless there is a good reason for a big change, the pattern will likely continue as it has been.
Cash flow and free cash flow went up, which is interesting because DIRECTV only made a small contribution this quarter. That makes me think the rise in free cash flow is even more impressive.
Capital expenditures were low in the fourth quarter compared to the first quarter. In both cases, the amount spent on capital projects in the fourth quarter is less than 25% of the whole budget.
After dividends, there was a lot of free cash flow. The management has said in more than one place that most of the original $6 billion in savings have been made. The money saved on costs should increase cash flow ...
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