ATT Stock: Earnings, Revenue Top Views As Telecom Giant Is Early 2022 Winner

AT&T stock reversed down Wednesday after the telecom giant reported fourth-quarter earnings and revenue that topped estimates while its 2022 revenue outlook met expectations.

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For the quarter ending Dec. 31, AT&T (T) earned 78 cents per share on an adjusted basis, up nearly 4% from a year earlier. Revenue fell 10% to $41 billion including the divestiture of satellite TV firm DirecTV, but topped views.

A year earlier, AT&T earnings were 75 cents a share on revenue of $45.7 billion. Analysts estimated earnings of 76 cents a share on revenue of $40.3 billion.

For fiscal 2022, AT&T said it expects per-share earnings in a range of $3.10 to $3.15. The telecom firm forecast revenue growth in the low single digits. Analysts predicted 2022 earnings of $3.16 a share on revenue of $156.3 billion, up from $153.2 billion.

AT&T stock initially rose before the market open on the earnings release. But T stock fell 6.1% to 24.84 in midday trading on the stock market today.

“The results were weak, with EBITDA (earnings before interest, taxes, depreciation and amortization) missing in every segment,” MoffettNathanson analyst Craig Moffett said in an email. “And there is no pro-forma growth here whatsoever.”

Heading into the earnings report, shares had gained 7.6% in 2022 amid a market correction.

AT&T Stock: Discovery Deal To Close

AT&T in early January pre-announced wireless postpaid phone subscriber results for the period. The company added 880,000 postpaid phone subscribers, topping estimates of 804,000

Also, AT&T has agreed to merge its WarnerMedia business with Discovery (DISCA). The deal could close in the second quarter of 2022.

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Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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