By AT&T, one of the leading telecom giants, is making significant strides towards achieving its financial targets, according to Chief Financial Officer Pascal Desroches.
Desroches highlighted that AT&T is on course to achieve a free cash flow of approximately $16.5 billion by 2023. Furthermore, the company expects this metric to further improve in 2024. These positive projections can be attributed to the addition of profitable wireless and fiber customers, among other factors. The telecom giant forecasts adjusted earnings-per-share (EPS) to fall within the higher end of its previously provided range of $2.35 to $2.45; specifically, it anticipates EPS to be in the low $2.40’s range.
In its pursuit for growth and excellence, AT&T has formed a strategic partnership with Swedish equipment supplier, Ericsson. The company has committed to purchasing up to $14 billion of hardware and services from Ericsson. As part of the deal, Ericsson will open up its software to allow for compatibility with rival systems. AT&T expects these plans with Ericsson to cause accelerated depreciation, which will impact its adjusted earnings-per-share in 2024.
Furthermore, AT&T is confident in achieving its goal of a 2.5x net-debt to adjusted earnings before interest, taxes, depreciation, and amortization by the first half of 2025.
Looking specifically at the fourth quarter performance, AT&T is pleased to report that postpaid phone net adds are expected to experience sequential growth, with around 500,000 new additions anticipated. In addition, fiber net adds for the quarter are projected to be in the range of 250,000. These figures align with the typical seasonality patterns observed by the company.
Despite the challenges faced by the industry, AT&T remains resolute in its dedication to financial success and customer satisfaction.
Comments