AT&T (NYSE:T) reported first-quarter earnings that beat analyst expectations, though revenue fell short.
The stock was trading 1.5% higher in premarket trading.
For the fiscal Q1 2024, AT&T posted earnings per share (EPS) of $0.55, above the consensus estimate of $0.53. However, the company's revenue for the quarter was $30 billion, slightly below the consensus projection of $30.53 billion.
AT&T highlighted that total service revenues increased by $225 million, while equipment revenues decreased by $336 million. Mobility service revenues saw a growth of 3.3%, and broadband revenues increased by 7.7%, primarily driven by expansion in fiber services.
The company's adjusted EBITDA for the quarter was $11 billion, marking a 3.8% increase year-over-year, and surpassing the analysts' expectations of $10.89 billion.
AT&T noted that the reported adjusted EPS included an approximate $0.11 impact from factors such as higher depreciation, non-cash pension and post-retirement costs, lower capitalized interest, and reduced equity income from DIRECTV
For the full fiscal 2024, the telecom giant reiterated guidance of adjusted EPS in the range of $2.15 to $2.25.
"Our results this quarter reflect continued strong growth in our Mobility and Consumer Wireline connectivity businesses, which represent about 80% of our total revenues," said John Stankey, AT&T CEO.
"Customers are choosing AT&T and staying with us. We achieved a record-low first-quarter postpaid phone churn, grew consumer broadband subscribers for the third consecutive quarter, and expanded margins in Mobility and Consumer Wireline.”