AT&T (NYSE:T) reported a mixed set of second-quarter results. Still, shares traded about 2.3% higher in pre-open Wednesday as Q2 results will likely be seen as better than what some investors feared.
The company posted a profit per share of $0.63, $0.03 better than the analyst estimate of $0.60. Revenue for the quarter came in at $29.92 billion, missing the consensus estimate of $30.01B.
The company said its mobility revenue rose 2% year-over-year to $20.3B, although still missing the $20.45B expectations. AT&T generated $4.2B in Q2 free cash flow.
"The direction we set three years ago is sound, and we're on the right trajectory. Compared to last year, Mobility service and broadband revenues are up, Adjusted EBITDA is up, free cash flow is up, Mobility and Consumer Wireline margins are up and customer lifetime values are up," said John Stankey, AT&T CEO.
"We're focused on growing the right way, adding profitable 5G and fiber customers. We are also committing to an incremental $2 billion-plus in cost savings beyond the $6 billion we have accomplished over this period, reflecting our continued march to operating the company in a more focused and streamlined fashion. Our results give us full confidence in delivering our full-year financial guidance."
AT&T saw 464,000 wireless postpaid net additions, including 326,000 phone net additions. Both missed analyst targets.
The Texas-based business reiterated its guidance for FY FCF of “at least” $16B.