AT&T Stock (NYSE:T)
After reporting solid financial figures for the third quarter, investors bid up shares of AT&T (NYSE:T) by 8% as of 12:33 p.m. ET on Thursday. With relatively consistent income from cellular users, AT&T stock has beaten the market this year, falling by just 9.5% thus far.
The corporation reported $30 billion in sales, which is $30 billion more than the $29.87 billion predicted by analysts. Earnings per share after adjustments of $0.68 are also above predictions of $0.61.
The market mood surrounding this telecom firm, which saw its share price plummet leading into the report, might be changed if it can translate its continuous top-line growth into good increases on the bottom line.
What’s the Reason?
The results demonstrate that AT&T’s recurring revenue division is operating to generate consistent earnings in a hard environment, helping to drive the stock price upward. AT&T claims to have achieved its fastest increase in a decade regarding cellular service revenue.
In addition, management has said that it has a “line of sight” to a $14 billion free cash flow for the whole year. Company leaders expect to save between $4 billion and $6 billion by the end of the year via various cost-cutting measures.
What’s Next?
AT&T stock is anticipating a continuation of a mid-single-digit increase in cellular service revenue. Even though the economy is tough, investors are happy to hear that the firm is on track to meet or exceed its financial goals for the year.
The free cash flow production is proving to be more than enough to maintain shareholders’ $8 billion dividend distribution. AT&T stock has a higher-than-average dividend yield of 6.6% thanks to its current quarterly dividend payment of $0.2775 per share.
AT&T has been doing well as a defensive holding throughout the current market slump. As it rolls out mid-band 5G spectrum, AT&T stock sees a significant uptick in postpaid phone net additions. It is approaching its goal of one million AT&T Fiber net adds for 2022.
Featured Image- Megapixl @ Luckydoor
Author Shariq Khan 
