The company updated its outlook in its earnings report for the second quarter of the year. This has it expecting free cash flow (FCF) for 2022 to be in the $14 billion range. AT&T’s prior guidance was for cash flow in the $16 billion range.
So what’s behind that updated outlook? AT&T contributes it to expected lower vendor device payments of $3 billion or more, as well as $2 billion in lower capital investment, and reduced
distributions from DIRECTV.
John Stankey, CEO of AT&T, said the following in the earnings report:
As a result of our higher-than-forecasted customer growth, we’re increasing our Mobility service revenue guidance to 4.5-5% growth for the full year. We’re also decreasing full-year free cash flow guidance to the $14 billion range to reflect heavy investment in growth and working capital impacts related to timing of collections.
As for the company’s results in that report, it brought in an adjusted earnings per share (EPS) of 65 cents on revenue of $29.6 billion. To put that in perspective, Wall Street was looking for an adjusted EPS of 61 cents on revenue of $29.55 billion.
Today’s earnings news has AT&T stock seeing strong trading right out of the game. That has some 3 8 million shares on the move as of this writing. That’s well on its way to the company’s daily average trading volume of about 42.5 million shares.
T stock is down 9.6% as of Thursday morning.
There’s more recent stock market news to dive into below!
We’ve got all the hottest stock news traders need to know about for Thursday! That includes what’s happening with cruise and airline stocks, as well as this morning’s biggest pre-market stock movers. You can find out more on these matters at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.