2023-10-20 06:10:00 ET
Telecom giant AT&T (NYSE: T) surprised investors on Thursday with third-quarter results that sent its stock flying. Not only did AT&T beat analyst expectations for both revenue and earnings per share, but the company gained more postpaid phone subscribers than it did in the previous quarter and raised its full-year free-cash-flow outlook.
AT&T stock has been stuck in the doldrums this year as investors fretted about the company's high level of debt, a more competitive wireless industry, and the possibility that AT&T would fall short of its free-cash-flow target. The company has now put at least some of those concerns to bed.
AT&T's mobility revenue grew 2% year over year, driven by a 3.7% rise in service revenue and held back by a 3.2% drop in equipment revenue. The company gained 468,000 net postpaid phone subscribers, up from a gain of 326,000 in the second quarter.
For further details see:
It's Not Too Late to Buy AT&T Stock After a Stellar Earnings Report