AT&T Inc. (NYSE:T) has disclosed a significant cybersecurity incident in which threat actors accessed and copied customer call logs from a third-party cloud platform. The breach, which AT&T became aware of on April 19, 2024, involved the exfiltration of files containing records of customer call and text interactions between May 1 and October 31, 2022, and on January 2, 2023.
The company, in a statement today based on a SEC filing, confirmed that the compromised data does not include the content of the communications, personal details like Social Security numbers, or other personally identifiable information. However, the data does contain records of interactions, including the telephone numbers, counts of interactions, and aggregate call durations. Additionally, for some records, cell site identification numbers were included.
AT&T has reported that the breach affected nearly all of its wireless customers and those of mobile virtual network operators using AT&T's network. While the data does not include customer names, the company acknowledged that public tools could potentially link telephone numbers to individual names.
In response to the incident, AT&T has implemented additional cybersecurity measures and closed off the point of access used by the attackers. The company will notify current and former customers impacted by the breach.
The U.S. Department of Justice had previously allowed AT&T to delay public disclosure of the incident for investigative reasons, with one individual reportedly apprehended in connection with the breach. As of the filing date, AT&T does not believe the data has been made publicly available and asserts that the incident has not materially impacted its operations or financial condition.
The information for this report is based on a press release statement from AT&T.
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This was largely due to heightened demand in North America, where sales climbed by 14% following a significant contract with AT&T. Despite a loss in adjusted earnings before interest and taxes (EBIT) of 11.9 billion crowns, analysts from PP Foresight and Inderes responded favorably to Ericsson's performance.
Scotiabank has increased its price target for AT&T shares to $23.00, maintaining its Sector Outperform rating due to strong growth in the company's mobility and consumer wireline businesses. The firm anticipates a modest 1.8% growth in adjusted EBITDA. Additionally, Deutsche Bank (ETR:DBKGn) has raised AT&T's stock target to $26.00, reflecting optimism over AI integration and the potential for increased wireless market share.
The National Football League (NFL) faces a substantial payout of over $4.7 billion in damages to subscribers of its "Sunday Ticket" service, which has implications for AT&T, as DirecTV, a subsidiary of AT&T, was the former distributor of the service.
Meanwhile, the Federal Communications Commission (FCC) Chair, Jessica Rosenworcel, has demanded strategies from major companies, including AT&T, to combat fraudulent political robocalls made using artificial intelligence. These are recent developments that investors may want to consider.
InvestingPro Insights
In light of AT&T's recent cybersecurity incident, it's essential for investors to consider the company's financial health and market performance. According to real-time data from InvestingPro, AT&T boasts a substantial market capitalization of $135.23 billion, reflecting its significant presence in the telecommunications industry. With a P/E ratio of 13.01, the company presents a valuation that may interest value-focused investors, especially when considering the adjusted P/E ratio for the last twelve months as of Q1 2024 is an even more attractive 9.06. Additionally, AT&T's dividend yield stands at a robust 5.89%, a testament to its commitment to returning value to shareholders, as evidenced by its track record of maintaining dividend payments for 41 consecutive years.
InvestingPro Tips highlight that AT&T has a perfect Piotroski Score of 9, indicating strong financial health, and the company's valuation implies a strong free cash flow yield, which may be appealing to investors seeking companies with solid financial fundamentals. Moreover, for those looking to delve deeper into AT&T's investment potential, there are additional InvestingPro Tips available, offering insights that could further inform investment decisions. To access these, investors can visit: https://www.investing.com/pro/T. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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