DALLAS – AT&T Inc. (NYSE: T) CEO John Stankey is slated to speak at the 52nd Annual J.P. Morgan Global Technology, Media and Communications Conference tomorrow, where he will provide an update on the company's multiyear growth strategy. The telecom giant continues to make strides in its long-term growth plan, focusing on the expansion of its 5G and fiber networks, and is on track to meet its financial guidance for the year.
The company has been investing heavily in its infrastructure, with capital investments expected to be in the $21-22 billion range for 2024. This investment is part of a broader strategy that has seen AT&T pour more than $145 billion into its wireless and wireline networks over the past five years, which includes acquisitions of wireless spectrum.
AT&T's approach seems to resonate with its customer base, as the company reports steady customer growth and strong cash conversion. The company also anticipates achieving over $2 billion in run-rate cost savings by mid-2026 and is working towards a net-debt to adjusted EBITDA ratio in the 2.5x range in the first half of 2025.
In terms of infrastructure, AT&T's current fiber network passes over 27 million consumer and business locations, with plans to exceed 30 million by the end of 2025. The potential for further expansion is significant, with an additional 10 to 15 million locations within its existing footprint being considered, contingent on favorable build parameters and a regulatory environment conducive to investment.
AT&T's Mobility business is performing well in the second quarter, with healthy industry trends and solid performance from its AT&T Fiber service, which has penetration rates surpassing initial expectations.
The company's connectivity portfolio, which includes 5G, fiber, and AT&T Internet Air, a fixed wireless access product, is expanding, with AT&T Internet Air now available in parts of 95 locations for consumers and nationwide for businesses.
The company's strategy also includes modernizing its wireless network with Open Radio Access Networks (Open RAN) to drive efficiencies and cost savings. Additionally, AT&T has entered into a commercial agreement with AST SpaceMobile to explore space-based broadband networks.
The webcast of Stankey's conversation at the J.P. Morgan conference will be available live and for replay on AT&T Investor Relations website. This report is based on a press release statement from AT&T.
InvestingPro Insights
As AT&T Inc. (NYSE: T) continues to advance its multiyear growth strategy, InvestingPro data and tips provide additional insights into the company's financial health and market performance. AT&T's current market capitalization stands at a robust $125.62 billion, reflecting its significant presence in the telecommunications sector. The company's P/E ratio is 12.9, indicating how much investors are willing to pay for each dollar of earnings, which is a key metric for valuation.
InvestingPro Tips highlight that AT&T has a high shareholder yield and has maintained dividend payments for 41 consecutive years, showcasing its commitment to returning value to shareholders. This is particularly important for income-focused investors seeking stable dividend-paying stocks. Moreover, AT&T's dividend yield is currently at an attractive 6.38%, which is substantially higher than the average yield found in the S&P 500.
The company's stock is also trading near its 52-week high, at 96.5% of this level, reflecting investor confidence and a potentially bullish outlook among market participants. With the next earnings date set for July 24, 2024, investors will be keen to see if the positive trends continue.
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