AT&T Stock Rises On Strong Wireless Subscriber Gains As Earnings Meet Estimates – Investor’s Business Daily
2025-04-23T11:14:00Z
AT&T stock climbed amid first quarter wireless postpaid phone subscriber additions that beat expectations. Earnings met estimates.
AT&T (T) early Wednesday reported first-quarter earnings that met estimates while revenue edged by Wall Street targets. AT&T stock climbed amid wireless postpaid phone subscriber additions that beat expectations.
Further, AT&T earnings were 51 cents on an adjusted basis, excluding one-time items, up 6% from a year earlier. Revenue rose 1.5% to $30.6 billion.
Analysts had projected AT&T earnings of 51 cents a share on revenue of $30.4 billion, according to FactSet.
Also, the company said it added 324,000 postpaid wireless postpaid phone customers during the quarter vs. estimates for a 255,000 gain. In Q1 2024, AT&T added 349,000 wireless postpaid phone subscribers.
Verizon Communications (VZ) on Tuesday said it lost 289,000 wireless postpaid phone business and consumer subscribers, versus estimates for a loss of 197,000 subscribers.
AT&T Stock Out-Performs In 2025
On the stock market today, AT&T stock climbed 0.8% to 27.20 in afternoon trading. Heading into the AT&T earnings report, shares were up 19% in 2025, retaking their 50-day line on Monday.
Also, some analysts view telecom firms as defensive plays as Donald Trump’s tariff-based trade policies spark worries over a possible U.S. recession.
Free Cash Flow Growth
In addition, AT&T reported Q1 free cash flow of $3.1 billion, slightly below estimates of $3.17 billion. Free cash flow growth supports AT&T’s dividend.
Meanwhile, AT&T has returned to its telecom roots, shedding satellite TV broadcaster DirecTV and WarnerMedia. The company expects the sale of its entire 70% stake in DirecTV to private equity firm TPG to close in mid-2025.
AT&T’s March quarter free cash flow excluded DirecTV.
AT&T has refocused on “convergence”— selling landline broadband and wireless services in product bundles. In Q1, AT&T said it added 261,000 fiber broadband subscribers, with consumer fiber broadband revenues rising 19% to $2.1 billion.
“Management is achieving 40% mobility sell-through on fiber implying it AT&T could have almost 16 million handsets tethered to a fiber connection,” said Frank Louthan, a Raymond James analyst, in a report.
Also, AT&T plans to expand its own fiber-optic network to 30 million-plus homes and businesses by the end of 2025.
These Are The Five Best Stocks To Buy Or Add To A Watchlist Now
Heading into the AT&T earnings report, T stock had a Relative Strength Rating of 96 out of a possible 99, according to IBD Stock Checkup.
If you’re new to IBD, consider taking a look at its trading system, especially for bull and bear markets, the basics of technical analysis and recognizing base patterns. One great resource is Investor’s Corner. Give thought to monitoring updates to IBD stock watch lists.
IBD offers a broad range of growth stock lists. Amid market volatility, here are some useful strategies. Meanwhile, IBD doesn’t put much weight on P/E ratios and other valuation metrics. On the other hand, here are some time-tested trading rules.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
YOU MAY ALSO LIKE:
Learn The Best Trading Stock Rules From IBD’s Investor’s Corner
Want To Trade Options? Try Out These Strategies
Monitor IBD’s ‘Breaking Out Today’ List For Companies Hitting New Buy Points
IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today
Stock Market Jumps On Trump, Musk
Auto-posted from news source
About The Author
