AT&T Inc, one of America’s largest telecommunications companies, has forecasted annual profits below Wall Street expectations, as the company joins rival Verizon in bracing for a slowdown in wireless customer growth amid rising competition. The company’s renewed focus on the telecoms business after shedding media assets last year, however, helped boost its subscriber numbers. The U.S. carrier added 656,000 postpaid phone subscribers in the latest quarter, above Factset estimates of 644,800 additions. Analysts and investors closely watch postpaid numbers as customers opting for those plans pay a recurring monthly bill, making them valuable to the carriers.
AT&T’s earnings for 2023 are expected to be in the range of $2.35 and $2.45 per share, compared with analysts’ estimates of $2.56 per share, according to Refinitiv data. Despite this, the company’s wireless service revenue growth for the year is expected to be 4% or higher. The company posted a loss from continuing operations of $23.1 billion, or $3.20 per share, in the fourth quarter, after taking a $25 billion impairment charge primarily due to rising interest rates and asset impairments.
AT&T’s Q4 loss from continuing operations was due to a $25 billion impairment charge, primarily due to rising interest rates and asset impairments. However, its Q4 earnings, excluding items, were above expectations. The company’s shares were up nearly 2% in premarket trading, indicating that investors remain optimistic about the company’s future prospects.
