AT&T stock ( NYSE:T ) rose 8% on Oct. 20 after the telecom giant released its third-quarter earnings report. Its revenue from ongoing operations fell 4% year on year to $30.0 billion, yet it still outperformed analysts’ estimates by $140 million.
The company’s adjusted profits from continuing operations climbed by 3% to $0.68 per share, above the average estimate by seven cents. Those headline figures show that AT&T’s business is stabilizing after the divestitures of DirecTV and WarnerMedia. But, after losing roughly a fifth of its value in the previous three months, is AT&T stock ( NYSE:T ) now poised to recover?
How Quickly Is the New AT&T Expanding?
AT&T has now reported three-quarters of its performance as a separate entity. Its mobility division, which includes its primary cellular sector and produced 70% of its sales in the third quarter, has steadily increased postpaid phone customers and revenue over the last year. It has also kept its clients with a low churn rate of less than 1% while its wireless EBITDA margins have been increasing sequentially.
However, AT&T’s business and consumer wireline categories, which account for the remaining 30% of revenue, are a little more complicated. Its corporate wireline revenue has been dropping throughout the year, owing to lower demand for its legacy voice and data services (particularly among government customers), while consumer wireline revenue has increased somewhat.
AT&T has been developing its consumer-oriented fiber network to counteract the delay. This expansion increased overall broadband net additions in the first quarter, but that trend has s...
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