AT&T Stock (NYSE:T)
AT&T stock (NYSE:T) dropped more than 10% during the middle of Thursday’s trading session. This came after the Dallas-based telecom giant posted mixed earnings for the first quarter and weaker-than-expected free cash flow. Additionally, the company said that it was experiencing a “small” reduction in upgrade rates.
AT&T (NYSE:T) reported adjusted earnings per share of 60 cents on sales of $30.14 billion for the quarter that ended on March 31. This compares to the consensus expectation of 59 cents per share on revenue of $30.22 billion. This includes a contribution of $20.6 billion from the company’s mobility segment; during this period, it gained 424,000 postpaid phone users.
According to the firm, the mobility division experienced its most profitable first quarter ever, as shown by an increase in EBITDA of 8% year-over-year.
AT&T’s churn rates remained very low during the quarter, at 0.81% for postpaid users and 2.73% for prepaid customers.
Additionally, the business increased the number of customers using its AT&T Fiber internet service by 272,000, bringing the total number of customers using the service to 7.5 million.
AT&T stock said it earned around $1 billion in free cash flow during the quarter, much lower than the forecasts of approximately $3 billion. Despite this, the company is well on its way to achieving at least $6 billion in cost reductions as it strives to improve its operations.
AT&T said it expects to earn at least $16 billion in free cash flow for the year. The company is confident in its estimate, even though its free cash flow during the quarter was lower than projected.
Following the release of the findings, rival companies Verizon and T-Mobile also saw drops in pre-market trade.
AT&T will discuss the findings at a conference call beginning at 8:30 in the morning.
Featured Image: Unsplash @ Brendan Stephens
Author Shariq Khan 
