AT&T’s Stock Drops Down As The Company Misses Expected Revenue Targets
Telecom giant AT&T has reported its Q4 profit which has fulfilled the expectations but the increase in number of postpaid wireless phone subscribers along with the generated revenue has fallen short of the estimates derived by the analysts. The stock of the company has dropped down in the morning hours of the trade. The company has revealed the data in one of its statements which was released by the officials of the company on last Wednesday. The company has said that the adjusted earnings per share for the 4th quarter were Eighty-Six cents. This was a rough increase of 10 percent than the previous year.
Sources have reported that there has been a rise of 15% in the revenue of the company which has increased to a value of $48Bn. These figures include the revenue and profit from the Time-Warner company which AT&T had acquired in the month of June of the year 2018. Last year, the EPS of the company was 78 cents and the revenue for the same was $41Bn. It has been reported that the analysts had predicted the revenue to be around $48.54Bn for the year 2018.
The company has revealed that it has acquired additional 134000 new postpaid wireless phone subscribers which too fell short of the predictions made by the analysts. The predictions derived out by those analysts were somewhere around 208000. It has also revealed that a total of 403000 subscribers were lost for its TV service business which is also more than what analysts had predicted. The predictions for the same were around 298000. After the company rolled back its marketing promotions, it lost around 267000 users. In the statement issued, the company has said that it expects a cash flow of $26Bn and a lower EPS growth.