AT&T Stock Rises on Strong Q2 Subscriber Growth
AT&T (T) shares saw a boost on Wednesday following the company’s second-quarter results, which exceeded analysts’ expectations in terms of new subscriber additions. The telecommunications giant reported 419,000 new postpaid subscribers, significantly surpassing the 251,800 projected by analysts. Additionally, customer churn was just 0.7%, outperforming expectations.
Despite the positive subscriber growth, AT&T slightly missed earnings and revenue estimates for the quarter. The company posted diluted earnings per share (EPS) of $0.49 on revenue of $29.8 billion, falling short of the anticipated $0.52 per share on revenue of $30.01 billion. However, AT&T reiterated its full-year guidance for adjusted earnings per share in the range of $2.15 to $2.25.
Market Reaction
Following the release of its quarterly results, AT&T’s stock price surged by approximately 4% in recent trading. This increase made AT&T a standout performer in the S&P 500’s communications service sector, which was weighed down by declines in shares of tech giants like Google parent Alphabet (GOOGL) and Facebook parent Meta Platforms (META).
Network Challenges
However, not all news surrounding AT&T has been positive. The Federal Communications Commission recently released a report detailing an outage that occurred in February, lasting over 12 hours and affecting more than 92 million voice calls. The commission attributed the outage to an equipment configuration error during an AT&T Mobility network change on February 24. This error caused the network to enter “protect mode,” disconnecting all devices and disrupting voice and 5G data services for wireless users.
This incident is not the only recent setback for AT&T. Earlier this month, the company disclosed that call and text records of “nearly all” its cellular customers were compromised in a significant data breach that took place in April.
Investor Outlook
Despite these challenges, AT&T remains focused on expanding its subscriber base and improving its network reliability. The company’s strong subscriber growth in the second quarter demonstrates its ability to attract and retain customers in a competitive market.
Investors are closely monitoring AT&T’s progress as it navigates through these network issues and works to enhance its cybersecurity measures. The stock’s positive performance following the quarterly results indicates that investors are optimistic about the company’s long-term prospects.
Conclusion
AT&T’s second-quarter results showcased robust subscriber growth, exceeding analysts’ expectations. While the company faced challenges with network outages and data breaches, it remains committed to addressing these issues and enhancing its services for customers.
Investors are encouraged by AT&T’s ability to attract new subscribers and minimize customer churn, despite facing stiff competition in the telecommunications industry. As AT&T continues to focus on expanding its subscriber base and improving network reliability, shareholders remain hopeful for the company’s future growth and success.
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