AT&T Inc. (NYSE:T) shares are trading lower premarket Wednesday. On Tuesday, the company’s chief executive officer, John Stankey, stated that they are observing stable, though normalizing, trends in the wireless industry.
The company disclosed satisfaction with the performance of the Mobility business in the third quarter.
Stankey said that fiber penetration rates are surpassing initial projections. While a work stoppage is currently affecting some fiber installations, it is not expected to significantly impact third-quarter financial results.
Outlook: AT&T continues to expect capital investments between $21 billion – $22 billion for 2024 to support its 5G and fiber initiatives.
The company also aims to achieve over $2 billion in run-rate cost savings by mid-2026 and is on track to reach a net-debt-to-adjusted EBITDA ratio of around 2.5x in the first half of 2025.
Additionally, AT&T plans to address short-term financing obligations while working towards a more sustainable and consistent free cash flow.
Apart from this, AT&T reiterated the annual financial guidance disclosed in July. The company reiterated FY24 Wireless service revenue growth in the 3% range, Broadband revenue growth of 7%+, and adjusted EPS of $2.15 – $2.25 versus the $2.20 consensus.
It also projects full-year adjusted EBITDA growth in the 3% range and a full-year free cash flow of $17 billion-$18 billion.
Investors can gain exposure to the stock via iShares MSCI USA Value Factor ETF (BATS:VLUE) and ETC 6 Meridian Mega Cap Equity ETF (NYSE:SIXA).
Also Read: Nokia And AT&T Partner For Next-Gen Fiber Network: Details
Price Action: T shares are down 0.28% at $21.65 premarket at the last check Wednesday.
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This article AT&T CEO John Stankey Flags Normalizing Wireless Trends And Strong Fiber Growth: Details originally appeared on Benzinga.com
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