AT&T Q4 Profit Matches Estimates On Revenue Growth

by Ike Obudulu Posted on January 30th, 2019

AT&T Inc. (T) reported fourth-quarter net income attributable to company of $4.9 billion, or $0.66 per share, compared to $19.0 billion, or $3.08 per share, in the year-ago quarter which reflected the impact of the December 2017 federal Tax Cuts and Jobs Act. Adjusting for items, earnings per share was $0.86 compared to an adjusted $0.78 in the year-ago quarter, a 10% increase. On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $0.86 for the quarter. Analysts’ estimates typically exclude special items.

Fourth-quarter revenues totaled $48.0 billion compared to $41.7 billion in the year-ago quarter, up 15.2%, primarily due to the Time Warner acquisition partially offset by the impact of ASC 606 which includes the policy election of netting of approximately $980 million of USF revenues with operating expenses. Without the accounting change, revenues were $48.9 billion, an increase of 17.2% primarily due to the Time Warner acquisition. Analysts expected revenue of $48.5 billion for the quarter.

For fourth-quarter, North America Wireless recorded 3.8 million total wireless net adds. For Mobility: service revenues were up 2.9% on a comparable basis; with 147,000 phone net adds in the U.S. which included 134,000 postpaid phone net adds, during the quarter.

Fiscal 2018 net income attributable to AT&T was $19.4 billion, or $2.85 per share, compared to $29.5 billion, or $4.76 per share in 2017. With adjustments for both years, earnings per share was $3.52 compared to an adjusted $3.05 in 2017, up 15% primarily due to lower rates associated with tax reform, the impact of ASC 606 and the acquisition of Time Warner.

Fiscal 2018 consolidated revenues totaled $170.8 billion compared to $160.5 billion, previous year, an increase of 6.4%, primarily due to the Time Warner acquisition partially offset by the impact of ASC 606 which includes the policy election of netting approximately $3.7 billion of USF revenues with operating expenses. Without the accounting change, revenues were $174.3 billion, an increase of 8.6% primarily due to the Time Warner acquisition.

For fiscal 2019, AT&T expects: free cash flow in the $26 billion range; low single-digit adjusted EPS growth; and gross capital investment in the $23 billion range.

Author

Ike Obudulu

Ike Obudulu

Versatile Certified Fraud Examiner, Chartered Accountant, Certified Internal Auditor with an MBA in Finance And Investments who has both worked for and consulted with some of the world's largest companies on main street and wall street in over 20 countries, Ike brings his extensive reporting and investigations experience to bear on his role as Chief Editor.
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